Los Angeles has some of the dreamiest homes that the state, even the country has to offer. However, the price of that offer is astronomical! What’s up with that? Let’s look through what some of the costs are, why they’re so high in LA and California altogether- and the marketing forecast for the area.
What’re the Current Costs in LA Real Estate?
If you’re looking to rent a single bedroom apartment with a private bathroom in LA, be prepared to pay between $750/month for a tiny place with next to nothing to over $125k/month for a furnished flat.
For a two-bedroom house with a single bath, rent begins at $2000 monthly. Rent for the same size place in an exclusive or high-end location can cost over $165,000 per month.
Neither the cost of renting or buying listed above incorporate the cost of water, electricity, waste removal, or any other utilities. Parking is an additional fee renters face that buying a home in LA eliminates,
For the same size places as listed, the house and the apartment, or condo, the cost of buying a place is likewise extremely costly. To buy a condo in LA will cost $400 grand up to $5o million and higher. Buying a house in Los Angeles real estate market costs between $660K and $125M.
Why are These Prices so High?
Within the city of Los Angeles alone, there are many influential factors. Geography, climate, business and other contributing elements within city limits continue to keep housing costs up.
In Los Angeles, as with any city, there is only so much land available to be developed as for housing. The problem with LA is that there is almost no more land left.
Because of the geographical barriers that Los Angeles is bound by, the city’s expansion is basically impossible. On one side of the city is the miles of coveted beaches on the beautiful Pacific Ocean. The Other side is bordered by the mountain range of the San Gabriel’s. Between the two extremities is desert.
Since the late 1800s, southern Californians have loved spending an average of 285 days in the sunshine every year. Even in the winter of December. the average low reported in LA is 50 degrees Fahrenheit.
Los Angeles businesses and residents rely on a water supply that travels underground over 300 miles. The city does have a river within it boundaries. However, the Los Angeles River is not a viable source of water for the city’s residents as it dries out for roughly eight months out of the years.
Silicon Valley in Los Angeles has seen great success since it first came into existence, driving prices all across the city upward. Offices of many large companies in every industry chose to make Los Angeles the location of their headquarters. Laboratories and centers for technological advancements also came to LA including some major corporations,
Who wouldn’t want to live in the same city as their favorite celebrity? Los Angeles is tightly associated with Hollywood and Beverly Hills too. So, the chance of seeing an A-list actor, or a sexy supermodel at a restaurant or store down the road from your house seems pretty high.
What Predictions have been Made for the Housing Market in LA?
On a global scale, the desire and demand for employment snd residence in Los Angeles, and in California is at an all-time high. Yet, there’s not enough housing as it is. A welcomed slowing of the market is expected in California housing next year. As of this past October, LA had already started to see some decrease in the obscenely high home values compared to the months before. Unfortunately, because of LA’s location combined with the exhausting process to gain the city’s approval to build, the number of homes being built is likely to decrease. Therefore, the inventory of available homes is unlikely to grow.