Los Angeles’s prime market goes from strength to strength

The pandemic-induced reassessment of lifestyles saw sales activity surge in 2020 with super prime sales (US$10 million+) increasing 26% year-on-year. One hundred and fifty-five properties transacted at this level, overshadowing the 123 registered in 2019.

Buyer appetite has yet to diminish. Across LA County, the number of signed contracts increased 39% in the year to March 2021.

Home to 5,507 ultra high net worth individuals (UHNWIs) - those with more than $30 million in US assets - only New York and London have a higher concentration of wealth than Los Angeles.

Released today, Knight Frank’s Los Angeles Focus Report presents the latest metrics on the city’s luxury housing market and delves deeper into the findings published in The Wealth Report 2021.

Key findings:

• Home to over 583,000 millionaires, Los Angeles has more millionaires than Hong Kong or Singapore
• Prime prices increased 8% in 2020 - the tenth consecutive year of price growth for Los Angeles
• A year from the start of the pandemic, signed contracts in Los Angeles are up 39% year-on-year
• Cash buyers as a percentage of total sales in Los Angeles slumped from 41% in Q2 2020 to 20% in the final quarter as buyers took advantage of record low mortgage rates
• The city’s key constraint is a shortage of supply – both new construction and listings declined in 2020 with new listings of single-family homes declining 47% in the year to March 2021.
• Only the third city to host the Olympics three times, Los Angeles is set to benefit from a host of transport and infrastructure improvements including the new Automated People Mover, a 2.5 mile train linking LAX Airport with the city’s light rail lines.
• Los Angeles is set to enter a new phase of reinvention with wellness and sustainability at its core. It has an ambitious plan to reinvent the 51-mile stretch of the LA River, with 20 sites identified in which to invest in green space.

To discuss any property requirements, you might have or broader market conditions do get in touch with US Team.

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