The West Side of LA is a popular area for renters and homebuyers who can afford to live here – homes regularly sell in the region of $2-$3 million in this neighborhood, and you’ll need to find around $3,000 to rent a one-bedroom apartment here. But is this real estate outlook set to last, or will the next five years see some major shifts in the property market? We take a look below.
Dynamic and Diverse
The real estate market in Los Angeles’ West Side is known for being dynamic and diverse, with investment in this sector proving extremely lucrative in recent years. Homes for both rent and sale remain highly in demand here, and it’s no surprise why. As well as year-round sunshine and pleasant weather, LA, in general, offers fantastic employment opportunities, proximity to both mountains and the coast, excellent opportunities for dining and shopping, and plenty of exciting events such as gallery openings, sporting events, concerts, drive-in film showings, and movie premieres. Not to mention the general quality of life here, which is widely regarded as being superior.
Low Housing Supply Could Ease
One of the major factors keeping property rental and sale prices high is the low supply of housing stock, but this could significantly change over the next half-decade. Low levels of construction (partly down to the unique geographical features of the area) have fueled this, as has the fact that single-family lots, as opposed to multi-family developments, have proliferated. In terms of the latter, however, things are set to shift.
Recently signed state legislation has now permitted the construction of accessory-dwelling units (ADUs) on existing single-family lots and allowed some urban single-family lots to be divided into two. This is likely to have a tangible impact on housing supply which could ultimately see rental and sale prices fall. A little, at least – this is LA, after all!
Opportunities for Investment
The West Side, and LA as a whole, is set to continue to provide a lucrative investment environment over the coming years for individuals keen to make money in the real estate market. There’s a lot of competition when it comes to such investment, and the key is often to identify up-and-coming or rebound neighborhoods where demand is likely to increase.
Given the continuing increase in the rise of property values in LA, investment in property here is likely to be a relatively safe bet. In the long term, properties in LA have always increased in value despite the presence of short-term fluctuations.
Is There Any Chance of a Housing Market Crash in LA?
While there’s never any complete certainty in the world of real estate, a housing crash in LA over the next five years is highly unlikely. The real estate market in LA is extremely robust and has shown remarkable resilience in the face of the pandemic and the relative economic turbulence of the last few years. Population growth and continuing demand for both for-sale and rental properties in the area are key factors in the market’s enduring stability.
Is It Possible to Find Cheaper Rentals on the West Side of LA?
We’re going to be honest: finding a cheap rental in the West Side of LA is pretty unlikely. After all, what’s considered “cheap” in this neighborhood is still extremely pricey by everywhere else’s standards.
If you dream of living in LA’s West Side, you may need to downgrade, in terms of space. Sure, a two-bedroom apartment may be out of reach, but renting a small one-bedroom studio flat could be doable. For renters, there is some good news: cheap renters insurance in Los Angeles is available, meaning that at least it’s affordable to protect your personal possessions against damage and theft. If you can afford any personal possessions after paying your rent, that is….
Alternatively, seek a rental in other areas of LA, such as San Bernardino, Lancaster, and Hawthorne, where apartments and homes to rent tend to be significantly more affordable than those found on the West Side.
The Future of LA’s West Side Real Estate Market
The future of the real estate market in LA’s West Side is looking very bright indeed. The vibrancy and dynamism of the market match the vibe of the neighborhood itself, which remains a hugely popular area to live in in LA.
While an increase in housing stock – both in terms of properties to rent and buy – could see some of the more stratospheric prices fall over the next few years, the West Side is unlikely to ever be considered a cheap place to live. However, if you’re prepared to sacrifice some floor space, you could still find an apartment that just about comes within budget, giving you the opportunity to enjoy some unique West Side living.
