L.A. Home Ownership Just Keeps Falling

Patrick Inglis is VP of JLL capital markets.

LOS ANGELES—Homeownership is steadily declining In Los Angeles, and has been for years. New research from JLL shows that the city has the lowest homeownership rates in Los Angeles, with only 46.5% of residents owning a home. This is well below the national average of 62.9%. The rate has been dropping over the last decade. In 2006, homeownership was at 53.8% and has fallen nearly every year since, with the exception of 2010 to 2012 when the rate was nearly flat. By comparison, Riverside currently has a 62.6% homeownership rating, followed by Sacramento with 61%; San Francisco with 53% and San Diego with 52.1%. To find out the reasons why the homeownership rate is so much lower than other California markets, what is driving homeownership down and what this means for the commercial real estate market, we sat down with Patrick Inglis, VP of JLL capital markets for an exclusive interview.

GlobeSt.com: Why is home ownership continuing to decline in Los Angeles?

Patrick Inglis: Home ownership is declining as home prices in Los Angeles continue to rise, and the millennial generation’s continued preference to rent. The median home price in Los Angeles County as of August was $517,000 according to CAR, up $25,000, or 5.1% from last year. Furthermore, the County’s median income however, has only grown 2.5% and 4.0% between 2014-2015 and 2015-2016, respectively.