Why Invest in Los Angeles Real Estate?
Los Angeles is idiosyncratic in that it captures the essence of a multi-ecological setting bringing the ocean, the skyscraper, and the joyous place on earth under one rooftop. Its profound culture engulfs the city’s ambience and inundates the spirit of L.A. It is a city of fascinating diversity, incorporating a sizable population of nearly every ethnic background in the world.
Los Angeles is one of the most dynamic economies in the world. The city excels in every field, with a fast-growing and immense high-tech industry, world's leading creative economy, and even showcasing tremendous strength in aerospace and advanced transportation. The creative industries generate $207.8 billion in annual output in Los Angeles County, out of a $900 billion economy, making it one fifth of the total economic pie. The tourism industry still overpowers all of these and is a leading driver of the local economy. Los Angeles has built some of the largest road, electric and water networks in the world out of historical innuendos of real estate development.
Home to some of the world’s leading research universities like Caltech, USC, UCLA working on new technologies, cures, and solutions to global challenges, and training the next generation of scientists and entrepreneurs. Prestigious learning institutions support the creative industry. The city has witnessed major economic expansion in the last few years, with the gross domestic product per capita having surged by over 11.5% the past five years (2104-2019). Los Angeles County is the largest county by output, with its $710.9 billion GDP — equivalent to Saudi Arabia — accounting for 3.8% of the U.S. total. Los Angeles County added $395.2 billion to total U.S. GDP since 2001. The traditional economy that includes aerospace, entertainment, movie production, and tourism industries has evolved into a well-balanced economic engine driven by exceptional access to world markets.
Investment Considerations for Los Angeles Real Estate
There are a number of factors to consider, including:
- Economic diversity - Los Angeles is investing in infrastructure, henceforth making it a weapon to support economic growth. 20% of Los Angeles residents use public transport. The city has a multi ethnic population and has employed nearly 1.1 million people in trade, transportation, and utilities. The government provides a variety of incentive programs that are made available to both small and large businesses.
- Increasing rental demands - The average rental stands a $2530, a 3% increase from October 2018. The median home value in Los Angeles is $625,000, a decrease of 0.64% from last year. The average luxury residential rentals across the world rose 1.3% over the years, while the capital values slowed to 0.7%. The strong local economy is an optimistic criterion for residential real estate investments.
- Dreamy destination - Los Angeles is the centre of a five-county metropolitan area and basks in the glory of Hollywood, Beverly Hills, the Sunset Strip, and the famous beaches. Often referred to as California’s Paradise, it is a city of fascinating diversity, a cultural mecca boasting more than 100 museums, many of them world-class, and a paradise of idyllic weather. Tourism accelerated Los Angeles’ economic prosperity in 2018 as visitors pumped an all-time high $23.9 billion directly into the L.A. economy, generating a record $36.6 billion in total economic impact.
Finest neighbourhoods in Los Angeles to invest in:
The home price in Los Angeles has consistently risen in 2019. There is a good sign for buyers and investors as far as affordability is concerned as nearly three in four residents of Los Angeles County can’t afford to buy a median-priced home in the area, as the rise in home prices will increase relatively slower. All that being said, some of the lucrative neighbourhoods include: Studio City, Glendale, Downtown, Silver Lake, Manhattan Beach.
HomeUnion® is the leader in residential real estate investment. With the use of big data and machine learning, we analyze information on millions of single family homes in Los Angeles, CA; and across the United States and calculate home values RENTestimate for every property in Los Angeles, CA. If you’re looking for the best investment properties across the country, visit our comprehensive investment site.