Los Angeles, CA Housing Market
AI-powered market intelligence for the Los Angeles-Long Beach-Anaheim, CA metro area.
PropertyIQ Scores
Los Angeles, CA Market Analysis
Market Overview
Los Angeles, CA currently shows a relatively weak housing market, as reflected by a PropertyIQ Score of 40 out of 100. The median home value is $952,601, which is $188,443 above the California state average of $764,158. The rent index is $2,941, compared with a state average of $2,036. However, the median household income in Los Angeles is $95,958, which is $3,164 below the state average of $99,122. This combination of higher home values and rents but lower household income points to affordability pressure.
The market’s top score drivers paint a mixed picture. The 12-month home value momentum is 1.36%, while the 3-month home value momentum is -1.41%. The year-over-year home value change is reported as $-5, essentially flat. Median days on market is 53 days, and 16.6% of listings have a price cut. These indicators suggest that while the market has not collapsed, it is cooling, with sellers facing longer timelines and some downward pressure on asking prices.
With 20,134 homes for sale and an unemployment rate of 5.0%—slightly better than the state average of 5.1%—the market has a relatively large supply of homes. Still, the overall PropertyIQ Score of 40 and the soft recent price momentum indicate that Los Angeles is a moderate-to-weak market compared with typical conditions.
Key Trends
First, price momentum is soft in the short term. The 3-month home value momentum is -1.41%, even as the 12-month momentum is 1.36%. This divergence suggests that prices were slightly positive over a longer window but have recently declined. The year-over-year home value change of $-5 also indicates stagnation rather than meaningful growth.
Second, the market is slowing at the listing level. With median days on market of 53 days and 16.6% of listings showing a price cut, sellers are adjusting to weaker buyer demand. There are 20,134 homes for sale, which is a meaningful supply figure and gives buyers more options.
Third, affordability is stretched. The median home value of $952,601 is $188,443 higher than the state average, while the median household income of $95,958 is $3,164 below the state average. This means the local buyer base earns less than the state average while facing significantly higher home prices.
Fourth, the rental market is stronger relative to the state. The rent index of $2,941 is $905 above the state average of $2,036. While high rents make renting expensive, they also indicate sustained demand for rental housing, which may be relevant for investors. Population growth data is not available, so demographic-driven demand cannot be assessed.
Who Is This Market For
Given the PropertyIQ Score of 40 and the affordability gap, this is not an easy market for first-time buyers. A median home value of $952,601 is very high relative to the median household income of $95,958, and local incomes are below the state average. First-time buyers without substantial savings or outside financial support would likely face significant barriers.
This market may be more suitable for long-term rental investors who can handle high purchase prices and are focused on rental income. The rent index of $2,941 is well above the state average, which suggests that rental demand and pricing are relatively strong. However, investors should note the negative 3-month price momentum of -1.41% and the 16.6% share of listings with price cuts, which indicate limited short-term appreciation potential.
Move-up buyers with existing home equity may also find opportunities, but they would be selling into a slower market with 53 median days on market and price cuts on 16.6% of listings. Cash buyers and those less dependent on financing may have more negotiating power given the inventory of 20,134 homes for sale. The unemployment rate of 5.0%, slightly below the state average of 5.1%, does not signal severe labor market distress, but it does not overcome the affordability challenges.
Outlook
The near-term outlook for Los Angeles is cautious. The negative 3-month home value momentum of -1.41%, combined with a year-over-year home value change of $-5 and a 16.6% share of price cuts, suggests continued softness in home prices. The 12-month momentum of 1.36% shows some annual stability, but the recent trend points to flat or slightly declining values. With 20,134 homes for sale and a median of 53 days on market, buyers are likely to retain negotiating power, and sellers may need to remain competitive on price.
Affordability will likely remain a constraint. The median home value of $952,601 is far above the state average, while the median household income of $95,958 is below the state average. High rents at $2,941 may continue to support rental demand, but the purchase market would likely need stronger buyer income or lower prices to accelerate. Population growth data is not available, so future demographic demand is unclear. Overall, the data supports a cautious outlook with limited near-term price appreciation and continued opportunities for well-capitalized buyers.
AI-generated analysis based on current market data. Last updated October 1, 2026.
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Los Angeles, CA market data
Los Angeles, CA Housing Market Overview
Los Angeles, CA's median home value is $953K, up 1.4% over the past year. Homes here sell in a median 53 days. Its PropertyIQ Score of 40 sits modestly below the state average of 50.
Understanding the Los Angeles, CA housing market requires looking beyond headline price figures. The PropertyIQ Score reads both sides of market strength: Zillow price momentum across 3- and 12-month windows, and Realtor.com flow signals — days on market and the share of listings with price cuts. Together they predict how this CA metro is set to perform relative to the rest of its state.
Pacific Coast housing markets feature the nation's highest price points alongside strong wage growth from technology, entertainment, and trade sectors. Supply constraints from geographic barriers and regulatory environments create persistent affordability challenges but also strong long-term appreciation potential. Within the Pacific, Los Angeles, CA's PropertyIQ Score of 40 runs below the Pacific norm.
California's housing market is defined by extreme supply-demand imbalance, with CEQA regulations and geographic constraints limiting new construction. Despite affordability challenges, strong wage growth in tech and entertainment sectors sustains prices.
Each month, PropertyIQ updates its score for Los Angeles, CA using four inputs: Zillow ZHVI twelve-month and three-month momentum, Realtor.com median days on market, and the Realtor.com share of listings with price cuts. These four signals are combined into a single 1 to 99 score computed across all metro markets and calibrated so 50 represents the state average, making it a direct read of how this market is positioned to perform relative to its state. Momentum here has been positive, with home values up 1.4% over the past year.
Explore the interactive map to see how Los Angeles, CA compares to neighboring metros, or view the full market dashboard for detailed analytics including time-series trends, score breakdowns, and AI-generated market reports.
Counties in the Los Angeles, CA metro area
ZIP codes in the Los Angeles, CA metro area
View all 359 →Market data through August 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Los Angeles, CA a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Los Angeles, CA currently scores 40, a easing-momentum reading that leaves it positioned to lag its state modestly over the next three years. For buyers, softening demand tends to open up negotiating room as listings sit longer and price cuts become more common. Backing that up, the median home value here is $953K, up 1.4% over the past year. So whether Los Angeles, CA is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Los Angeles, CA?
Los Angeles, CA's PropertyIQ Score is 40, indicating easing momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 40 places Los Angeles, CA below its state benchmark.
Are home prices in Los Angeles, CA rising or falling?
Home prices in Los Angeles, CA are rising. Over the past year, the median home value increased 1.4%, reaching $953K. Over the latest three months, values slipped 1.4%, a sign near-term demand is softening. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Los Angeles, CA's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Los Angeles, CA?
In Los Angeles, CA, homes sell in a median of 53 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 17% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Los Angeles, CA market data is refreshed on a monthly cycle, with the latest figures current through August 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.