The growth comes alongside the highest housing market gain since the Great Recession.
Whether you are looking at luxury homes or regular listings, Los Angeles holds a reputation for its high price points. Regardless of your needs, you can expect the Los Angeles housing market to fulfill them through a steep price tag.
Keeping in line with this trend, the Los Angeles real estate recently added even more value to its residential listings. To be precise, the LA housing market gained a whopping $262 billion of value in 2020. To make it more significant, LA obtained this feat with just a 9.3 percent increase in overall home prices.
LA Housing Stock Continues to Surpass Expectations
The LA residential market has been the poster child of incredibly high real estate prices for a while. Take the last decade, for instance. In 2011, the LA housing stock held a value of $1.44 trillion. With the latest addition of $262 billion, it now has the staggering value of $2.8 trillion.
This puts LA just behind the New York metropolitan area, which has the biggest housing stock in the U.S. At $3.1 trillion, the Big Apple areas enjoy their lead over the City of Angels and surrounding locations.
But that’s where the Los Angeles housing market scores another big achievement. As compared to LA’s massive gain, New York only added $57 billion to its figures in 2020. As a result, LA continues its journey of trying to move past New York’s housing stock value.
The Area Contributed Massively to National Housing Stock Gains
Apart from marking a momentous year for the LA housing market, 2020 also brought good news for national housing stock. By adding $2.5 trillion, the residential market grew its value to $36.2 trillion. The yearly addition was also the biggest contributor of its kind since 2005.
Besides being significant in local housing market value, Los Angeles real estate also stands apart due to its national role. It’s because the increase in LA’s housing stock is also the highest among the 50 largest U.S. metropolitan areas.
The Los Angeles metropolitan area’s association with California earns it yet another distinction. With $7.8 trillion of home value, the Golden State is the largest contributor to national housing stock. In fact, the state holds 21.4 percent of the total housing value in the U.S.
The Housing Stock is Projected to Grow Further
The increase in the Los Angeles housing market is part of a national boost in real estate activity. Due to the coronavirus (COVID-19) outbreak and its effects on mortgage rates, the demand for residential listings has increased significantly. A surge in buyer interest and overall shortage of inventory has further elevated home prices.
Due to these reasons, the housing stock is currently moving past its usual levels of growth. Existing homes are seeing significant increase in their prices. Whereas, new constructions are racking up the stock further.
When put together, this makes up for the current annual gains to the national housing stock. Given homebuyer interest and new construction trends, this phenomenon is set to continue in 2021. As a result, real estate experts project this value to continue to grow over the next year.