In Los Angeles, houses in low cost submarkets—particularly areas near urban cores—are saw the strongest appreciation in 2019, according to research from JLL. Next to the Inland Empire, Central Los Angeles has the best home appreciation in the Southern California region. Central Los Angeles has become a stomping ground for homebuyers looking for affordability and proximity to the urban core.

"The type of appreciation we are seeing now is a direct response to Los Angeles's expensive home prices," Matt Kaufman, a research analyst at JLL, tells GlobeSt.com. "Many prospective homebuyers have been priced out of the region's more expensive areas, positioning home markets that are lower-priced as a new opportunity for aspiring homeowners."

West Adams is a prime example of a submarket within Central Los Angeles that has seen significant growth. "Areas like West Adams, which have maintained below-average home prices for the last few years, are now seeing 50% appreciation or more in some pockets because the area presents an affordable and practical housing option for young home buyers," says Kaufman.