Strong demand for luxury apartments in LA’s Westside. Many people can’t afford a home. The mortgage payment is $4,360 on a moderately priced home in West LA ($1,200,000 price, $200,000 down, $1,000,000 loan @ 3.25%). An annual income of $174,000 is needed to qualify for this loan. Many households are priced out of home ownership. Home prices in most other Westside neighborhoods are higher than West LA. Rent on a two-bedroom luxury apartment is $2,800 to $3,200.
There is a housing supply imbalance in the Westside and the trend supports further rent growth. A report from Experian shows that between 2005 and 2015 there were 3,482 new jobs and only 1,265 new housing units.
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