Low-Cost Houses See Strongest Appreciation in L.A.
Single-family homes in affordable areas near the urban core saw the strongest appreciation in the last year.
“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.
Homes in the Central Los Angeles area have appreciated more than 30%, according to the JLL research, but the median home price is in the $400,000 to $800,000 range, depending on the submarket.
“Home appreciation rates should remain highest in communities closest to the urban core,” says Kaufman. “These areas are already among the fastest-growing places in Los Angeles given their abundance of amenities and proximity to job clusters. It is likely that appreciation will remain high in these areas given the increased demand that accompanies population growth.”
Inglewood is a prime figure in this story. The submarket has seen strong growth, and with the new Hollywood Park stadium under construction, the market is poised for future growth. “Inglewood remains a particularly intriguing case study for home appreciation in 2020,” says Kaufman. “This area is already seeing high rates of appreciation, and the new amenities like SoFi Stadium and the Metro Crenshaw Line, both of which are opening this year, are likely to drive appreciation even higher.”