LA’s persistent housing shortage brings higher home prices and higher rents. There is increased new home/condo/apartment construction but it is still not enough to keep up with California’s population growth. Lack of enough new home construction is a major reason that home prices and rents has grown faster in California than the nation as a whole. Demand for housing is larger than the supply of housing. This condition is forecast to continue. Housing stock in LA grew by only 20% between 1980 and 2010, compared with 54% in the average US big city. According to the Case-Shiller index LA’s average home price has increased nearly 50% over the past five years. It is a compelling market in which to make investments.
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