The Los Angeles property market has been growing strong with no obvious signs of slowing down. As of February 2018, the median sale price of homes here is $686,000. To give you perspective, just last year it was $627,000 and the year before that in 2016 it was $579,000. In simple terms, home prices are rising fast in LA and it is getting more and more unaffordable to live in the city.
In response to the ever increasing prices, people are seeking neighborhoods further away from the very pricy West/Central LA and moving into up-and-coming ones that provide a good alternative at a more reasonable cost. We are seeing a general increasing trend in both sales volume and property prices in Central and Northeast LA as people are being priced out of West LA. A couple of years ago, the "hip" and affordable areas of LA were the trio: Echo Park, Silver Lake and Los Feliz. These areas are now considerably more expensive and unaffordable for the average first time homebuyer.
Below is a list of up-and-coming neighborhoods in LA that are gaining attention particularly from first time homeowners.
1. Glassell Park
Glassell Park is a small neighborhood bounded by Eagle Rock, Silver Lake, Highland Park and is just north of downtown LA. Glassell Park didn't always used to be a very desirable neighborhood, but it is clearly being gentrified (over the last 10-20 years) and is now a neighborhood that is experiencing an influx of younger, creative type people and families. Homes here are still relatively affordable considering the close proximity to DTLA. As people are being priced out of areas such as Eagle Rock and Highland Park, we are seeing Glassell Park becoming a very hot neighborhood to watch out for.
2. Eagle Rock
Sandwiched in between the cities of Glendale and Pasadena, Eagle Rock has been gentrified over the past 20 years and has been an up and coming neighborhood consistently. There is a sense of authentic urbanism and small-town intimacy that continues to attract millennial artistic types, hipsters and investors into this area which have contributed to the steady rising prices. From Q4 2016 to Q4 2017, Eagle Rock has seen a 44% increase in sales volume alone. Occidental College is also located in Eagle Rock.
3. Cypress Park
Cypress Park is a small, densely populated neighborhood that is approximately 82.1% Latino. It is a nice, small pocket that is close to freeways, DTLA and surrounded by other great up and coming neighborhoods that are more established and ethnically diverse such as Eagle Rock and Highland Park. Unlike Glassell Park, Eagle Rock or Highland Park - this neighborhood has yet to really see an influx of other ethnicities or creative types. Efforts to restore the Los Angeles River by expanding parkland and making the area greener has stirred up interest in this area.
4. Mount Washington
Mount Washington is a historic neighborhood with a very interesting past. Many homes in this area have great views of the canyons, however it is also noted that this area contains the steepest streets in Los Angeles - so steep that buses don't drive around here! The neighborhood is filled with a diverse group of ethnicities and is one of the more affluent areas of East LA/Northeast LA, with 30% of the residents having an average household income of greater than $100,000 per year.
Inglewood is a southwestern city in LA County. While it isn't known for having the best neighborhoods in terms of safety, it is experiencing some gentrification and home prices are increasing as people around being priced out of its neighboring areas of Ladera Heights and Culver City. Inglewood is predominantly a Black (46%) and Hispanic (46%) city and home values are predicted to rise 16.3% next year. Construction of the Inglewood football stadium is now 40% complete and will be the largest, most expensive football stadium to date - costing $2.6 billion.
Interested in buying/selling property in these areas? Whether it be for personal property or investment, contact Andrew Lau for your real estate needs.