Good news for property owners is that US home prices have climbed higher than the pre-recession peak. Home prices in southern California climbed at over 6% this year, which is higher than the national average. Location is always key as wealthier areas have performed proportionally better. Headwinds to the good news include rising interest rates and the homeownership rate is near a five-decade low, however demand for rental housing remains strong in LA. There is a demographic boom of young adults and they are mostly renters.