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Los Angeles

The coastal Southern California City of Los Angeles is better known by its initials, LA. With over 4 million residents, Los Angeles is the biggest city in California in regards to population and the second in the nation, after New York City. While the Los Angeles real estate market typically enjoys positive population growth, it doesn’t surpass the national growth rate. This can likely be attributed to the negative net migration that Los Angeles has been experiencing for the past 5 years.

 

It’s believed that a high cost of living and a lack of affordable housing in the Los Angeles housing market is the cause of the negative net migration. However, for a Los Angeles real estate investor who can afford to buy and own rental properties in the city, there is high rental demand. According to NeighborhoodScout, around 64% of LA residents are tenants, which means that buying a rental property in Los Angeles makes for a good real estate investment.

 

The economy is surprisingly not hindered by the slow population growth in Los Angeles. The job market continues to grow at a rate higher than the national. Even though Los Angeles is famous for being home to Hollywood and has been dubbed the Entertainment Capital of the World, its economy goes far beyond the entertainment industry. The city is actually part of the largest manufacturing center in the United States with over 300,000 manufacturing jobs in the Los Angeles-Glendale-Long Beach metro area. Other key industries in LA include banking and financing, healthcare, high-tech research and development, education, architecture, engineering, and both commercial and residential real estate construction.

 

The Los Angeles real estate market was named one of the Top 20 Markets to Watch in 2019 by the annual PWC real estate report. In the Pacific Region of the US, specifically, it comes in only second to Seattle in terms of overall real estate prospects.

Los Angeles Realtors and Real Estate Agents

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Los Angeles  Real Estate Investment Performance
Facts and Market Trends in Los Angeles
Homes For Sale4,206
Airbnb Properties7,174
Rental Properties13,827
Traditional Vacancy rate3.70%
Airbnb Occupancy Rate70.82%
Mashmeter69.61%
Median Price$996,742
Median Rent Price$4,056
Price/sqft$558
Median Days on Market75
Price to Rent Ratio22.1
Average Cap Rate
Airbnb1.81%
Traditional1.64%
Average Rental Income
Airbnb$4,122
Traditional$3,756
 
Median Household Income$54,432
Population3,792,621
Transportation in Los Angeles
67 / 100
Somewhat Walkable
53 / 100
Good Transit
55 / 100
Bikeable
Los Angeles  Rent Prices
RENTAL STRATEGY STUDIOS 1 ROOM 2 ROOMS 3 ROOMS 4 ROOMS
Airbnb$2,379$2,536$3,345$4,298$5,610
Traditional$2,076$1,794$2,728$3,851$4,925
Los Angeles, CA - Homes for Sale - Newly Listed
Investment Properties for Sale
$990,000
MLS SR19264324
6757 Milner Road
Los Angeles, CA 90068
Hollywood
Single Family Residential
2 beds1 baths1,520 sq.ft.
CAP RATE
Trad. 1.00%Airbnb 1.16%
Investment Properties for Sale
$1,649,000
MLS SR19263138
6716 Colgate Avenue
Los Angeles, CA 90048
Mid City West
Single Family Residential
3 beds2 baths1,575 sq.ft.
CAP RATE
Trad. 1.16%Airbnb 1.02%
Investment Properties for Sale
$659,990
MLS CV19262421
5050 Coldwater Canyon Avenue #305
Los Angeles, CA 91423
Valley Village
Single Family Residential
3 beds2 baths1,566 sq.ft.
CAP RATE
Trad. 2.53%Airbnb 2.76%
Investment Properties for Sale
$575,000
MLS BB19264770
15206 Burbank Boulevard #202
Los Angeles, CA 91411
Sherman Oaks
Condo/Coop
2 beds3 baths1,300 sq.ft.
CAP RATE
Trad. 0.20%Airbnb 0.15%
Top Performing Los Angeles Properties
Investment Properties for Sale
$869,888
MLS IG19147858
5719 Hesperia Avenue
Los Angeles, CA 91316
Tarzana
Single Family Residential
4 beds3 baths1,816 sq.ft.
CAP RATE
Trad. 3.17%Airbnb 7.98%
Investment Properties for Sale
$389,000
MLS IV19155245
6506 S Hoover Street
Los Angeles, CA 90044
South Los Angeles
Single Family Residential
4 beds2 baths1,223 sq.ft.
CAP RATE
Trad. 3.39%Airbnb 7.72%
Investment Properties for Sale
$589,000
MLS 319004259
10621 Vanora Drive
Los Angeles, CA 91040
Shadow Hills
Single Family Residential
2 beds0 baths864 sq.ft.
CAP RATE
Trad. 0.93%Airbnb 7.45%
Investment Properties for Sale
$290,000
MLS PW19069607
18505 Mayall Street #C
Los Angeles, CA 91324
Northridge
Townhouse
3 beds3 baths1,361 sq.ft.
CAP RATE
Trad. 3.56%Airbnb 7.43%
Recently Sold Homes in Los Angeles, CA
Investment Properties for Sale
$1,350,000
MLS SR18132590
356 E Edgeware Road
Los Angeles, CA 90026
Chinatown
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Investment Properties for Sale
$1,524,000
MLS SR19240035
220 S Bonnie Brae Street
Los Angeles, CA 90057
Westlake
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Investment Properties for Sale
$1,825,000
MLS 819005228
4546 St Elmo Drive
Los Angeles, CA 90019
Mid City
Multi Family
8 beds4 baths4,892 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Investment Properties for Sale
$1,033,535
MLS
5000 AND 5002 MARATHON STREET AND 717 AND 717 1/2 OXFORD AVENUE
Los Angeles, CA 90029
Hollywood
Multi Family
8 beds5 baths2,448 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Property Value Changes and Real Estate Appreciation in the Los Angeles Housing Market

With the high real estate prices in Los Angeles, it’s natural to see that property appreciation has been significant over the years. According to NeighborhoodScout, Los Angeles properties have experienced a total appreciation of 200.8% since Q1 2000, which is an annual average rate of 6.1%. Typically, housing markets with such high property prices tend to show minimum appreciation once they hit peaks. However, Zillow reports that Los Angeles real estate values appreciated by 4.5% in 2018. So a property investor who can afford to buy an investment property in LA will still enjoy appreciation.

 

The Los Angeles housing market is currently a buyer’s market as there are more homes for sale on the market than people looking to buy. This is forcing property sellers to negotiate, which accounts for the fact that the median price of properties that sold is far below the median listing price. This fact, along with the property appreciation, makes the Los Angeles real estate market a great place to buy investment properties to rent out if you can afford the price tag.

Los Angeles, CA Top Multi Family Homes
Investment Properties for Sale
$950,000
MLS WS19187308
1852 W 11th Street
Los Angeles, CA 90006
Pico-Union
Multi Family
4 beds1 baths2,500 sq.ft.
CAP RATE
Trad. 6.67%Airbnb N/A
Investment Properties for Sale
$997,000
MLS WS19124006
3454 Sabina Street
Los Angeles, CA 90023
Boyle Heights
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. 6.59%Airbnb N/A
Investment Properties for Sale
$1,299,000
MLS SB19241021
1206 W Florence Avenue
Los Angeles, CA 90044
South Los Angeles
Multi Family
0 beds0 baths2,481 sq.ft.
CAP RATE
Trad. 6.02%Airbnb N/A
Investment Properties for Sale
$1,080,000
MLS CV19220357
448 Casanova Street
Los Angeles, CA 90012
Elysian Park
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. 5.80%Airbnb N/A
Homes Below Median Price in the Los Angeles, CA Real Estate Market
Investment Properties for Sale
$869,888
MLS IG19147858
5719 Hesperia Avenue
Los Angeles, CA 91316
Tarzana
Single Family Residential
4 beds3 baths1,816 sq.ft.
CAP RATE
Trad. 3.17%Airbnb 7.98%
Investment Properties for Sale
$389,000
MLS IV19155245
6506 S Hoover Street
Los Angeles, CA 90044
South Los Angeles
Single Family Residential
4 beds2 baths1,223 sq.ft.
CAP RATE
Trad. 3.39%Airbnb 7.72%
Investment Properties for Sale
$589,000
MLS 319004259
10621 Vanora Drive
Los Angeles, CA 91040
Shadow Hills
Single Family Residential
2 beds0 baths864 sq.ft.
CAP RATE
Trad. 0.93%Airbnb 7.45%
Investment Properties for Sale
$290,000
MLS PW19069607
18505 Mayall Street #C
Los Angeles, CA 91324
Northridge
Townhouse
3 beds3 baths1,361 sq.ft.
CAP RATE
Trad. 3.56%Airbnb 7.43%
Los Angeles Airbnb Growth and Regulations

Opponents of Airbnb in Los Angeles blame the lack of affordable housing and high real estate prices on the growth of the short-term rental industry. With Los Angeles County welcoming 2.7 million guests in 2018, generating $613 million in income for Airbnb Los Angeles hosts, the City Council set out to regulate these rental properties. As of July 2019, non-owner occupied short-term rental properties will be prohibited from being rented out on Airbnb and other vacation rental websites. This means that the operation of Airbnb investment properties is illegal in the Los Angeles real estate market.

 

For a primary residence to operate within the law, the host must live in the Airbnb rental property for half of the year. Short-term rentals will only be allowed to host guests for up to 120 days a year. Airbnb rentals will be subject to the same hotel accommodation taxes present in LA. Airbnb Los Angeles hosts must register with the city to operate legally at a cost of $89 a year and the rental property must meet all rental safety requirements. Properties under rent stabilization or ones that are considered affordable housing may not be listed for rent on Airbnb.

Los Angeles, CA Top Airbnb Homes
Los Angeles Airbnb
$141 per night
Los Angeles Airbnb
$115 per night
Entire home/apt · 1 bed
Venice Beach Cabana
641
Los Angeles Airbnb
$150 per night
Los Angeles Airbnb
$140 per night
Entire home/apt · 1 bed
BEST Downtown Loft on Airbnb!
613
Los Angeles, CA Homes for Rent
Investment Properties for Sale
$1,925
MLS 19-529352
Investment Properties for Sale
$18,000
MLS 19-528268
3333 MOORE Street
Los Angeles, CA
Mar Vista
Single Family
3 beds3 baths2,900 sq.ft.
Investment Properties for Sale
$2,850
MLS 19-529506
Investment Properties for Sale
$3,600
MLS 19-529358
Los Angeles, CA Open Houses
Investment Properties for Sale
Open 1 PM to 4 PM
$990,000
MLS SR19264324
6757 Milner Road
Los Angeles, CA 90068
Hollywood
Single Family Residential
2 beds1 baths1,520 sq.ft.
CAP RATE
Trad. 1.00%Airbnb 1.16%
Investment Properties for Sale
Open 2 PM to 4 PM
$614,212
MLS BB19265463
1421 Midvale Avenue #201
Los Angeles, CA 90024
West Los Angeles
Condo/Coop
2 beds2 baths833 sq.ft.
CAP RATE
Trad. 1.84%Airbnb 2.81%
Investment Properties for Sale
Open 1 PM to 4 PM
$479,000
MLS 319004536
15207 Magnolia Boulevard #119
Los Angeles, CA 91403
Sherman Oaks
Townhouse
2 beds2 baths1,122 sq.ft.
CAP RATE
Trad. 0.31%Airbnb 0.24%
Investment Properties for Sale
Open 2 PM to 5 PM
$620,000
MLS SR19258742
19604 Victory Boulevard
Los Angeles, CA 91335
Reseda
Single Family Residential
4 beds3 baths1,584 sq.ft.
CAP RATE
Trad. 1.88%Airbnb 5.94%
Best Los Angeles Neighborhoods for Buying Investment Property
87%
Mashmeter
property price
$1,172,500
Median
cap rate
4.48%
Traditional
4.01%
Airbnb
rental income
$4,380
Traditional
$3,915
Airbnb
homes for sale
106
occupancy rate
79%
Airbnb
99%
Mashmeter
property price
$645,000
Median
cap rate
10.56%
Traditional
7.35%
Airbnb
rental income
$5,678
Traditional
$3,950
Airbnb
homes for sale
94
occupancy rate
75%
Airbnb
71%
Mashmeter
property price
$1,149,000
Median
cap rate
3.23%
Traditional
4.80%
Airbnb
rental income
$3,097
Traditional
$4,592
Airbnb
homes for sale
43
occupancy rate
76%
Airbnb
84%
Mashmeter
property price
$712,000
Median
cap rate
5.65%
Traditional
6.23%
Airbnb
rental income
$3,354
Traditional
$3,699
Airbnb
homes for sale
13
occupancy rate
76%
Airbnb
89%
Mashmeter
property price
$987,000
Median
cap rate
4.00%
Traditional
3.76%
Airbnb
rental income
$3,287
Traditional
$3,095
Airbnb
homes for sale
58
occupancy rate
76%
Airbnb