How 2020 Changed Housing Affordability in Los Angeles

2020 was quite a year of changes for housing affordability in Los Angeles. According to the census bureau, the recorded median annual income in Los Angeles County is $68,044 and the average price of a home is just over $583,000. During the pandemic, Los Angeles saw a mass exodus with over 74,000 people leaving says the L.A. Times, in search of a more affordable living situation.

Here’s a look at what the future holds for 2021 after a year that turned everything on it’s head.

*This post was sponsored by Zumper but the write-up, research, and opinions are all from EatDrinkLA

Home Sales

2020 saw a massive uptick in home sales in Los Angeles county due to the number of people being forced to work from home and no longer needing to commute. This meant individuals no longer needed to live near their jobs and could choose to live in the suburbs in a more spacious home. Combine that with the lowest interest rates we’ve seen for home lending in decades and you have yourself a perfect storm. Supply however didn’t match the demand and the recorded home price from 2020 went up to a whopping $680,000 in Los Angeles County and $729,000 in San Diego County.

So, where does this leave renters who make up over 55% of the census population! According to Zumper.com, we saw a rent DECREASE in affluent urban areas and an INCREASE in more rural, less affluent areas. In all of the nation surveyed, the county with the highest decrease in rent growth was San Francisco County, CA, with -23.9%. While this, unfortunately, highlights another way in which the pandemic has been felt the hardest in lower-income areas, it provides a special opportunity for those who are considering a move to central Los Angeles.

Why it’s never been a better time to rent in the city

While housing affordability in Los Angeles in terms of owning a home continues to become less attainable, the rents in Los Angeles and San Francisco Counties are on the decline! The median price for a one-bedroom rental in Los Angeles is now $1851 with a list of rentals on Zumper to prove it!

The typical home value in the neighborhood of Sherman Oaks in Los Angeles County is over $1.2 million dollars but you can now rent a 1-2 bedroom apartment now for .2% of that! These are prices that are matching those seen almost a decade ago when yours truly made her own move Westward. You can also rent a studio for less than $1100 dollars on one of the most charming streets in Hollywood and not have to face the dreaded craigslist roommate situation thrust upon many of our young people in the quest to find affordable housing.

So following a year that seemed to close doors on many dreamers that come to Los Angeles for careers in the arts, my hope is that we will most likely begin to see a new crop of hopefuls moving in to take their place from suburbia. That should be enough to keep the stars twinkling in the city of angels.