Los Angeles Real Estate Market update Sept 2025

Greater Los Angeles Real Estate Market Update – 2023 to 2025 (With 2026 Outlook)

The Greater Los Angeles housing market has seen dramatic shifts over the past three years, shaped by rising interest rates, affordability challenges, and shifting buyer demand. From price growth in 2024 to a cooling trend in 2025, here’s a breakdown of how home prices, rental markets, and sales volumes are evolving—and what experts forecast for 2026.

Home Price Trends & Sales Volume (2023–2025)

Greater Los Angeles

2023: The median listing price hovered around $1.18M, but sales volumes trended slightly downward due to rising interest rates.
2024: Prices surged, with the median price hitting $1.155M for single-family homes (+10% YoY). Condos and townhomes climbed to about $700K (+7% YoY). Annual single-family sales reached 150,794.
2025: As of late summer, the median listing price ranged $1.0M–$1.2M, while Zillow reported a median sale price of $930,622, down 1.8% YoY. Inventory rose to nearly 11,977 homes for sale, but sales volume slipped—just 1,572 homes sold in August 2025, compared to 1,700 a year earlier.

Submarket Snapshots

Downtown LA Condos: Prices and sales volume continued to slide, with inventory piling up as buyers became more cautious.
San Gabriel Valley: Median sale prices in August 2025 dropped to around $1.0M, a sharp 12.9% YoY decline. Inventory rose modestly, with 544 homes on the market in mid-2025.

Market Direction & 2026 Outlook

Looking ahead, the California Association of Realtors projects the state’s median home price will climb 1% in 2025, followed by a stronger 3.6% rebound in 2026 (to about $905,000).

For Los Angeles:

Prime neighborhoods may see 3%-5% growth in 2026, driven by limited inventory.
Submarkets like San Gabriel Valley may continue to face price pressure if mortgage rates stay high.
Overall, the LA market is expected to stabilize with gradual appreciation, barring major economic shifts.

Rental Market: Evictions, Defaults & Listings

The rental side of the market is equally dynamic in 2025:

Rents: One-bedroom units typically cost $2,500–$2,750/month.
Vacancy: Remains very low at 3.1% in 2025 (down from 3.6% in 2024).
Evictions: From Feb 2023 to April 2025, LA recorded 210,901 eviction notices, with 94% tied to non-payment of rent. The average balance owed was about $3,988.
Trends: Eviction filings peaked in mid-2023 (over 11,000 notices/month) but have since eased to 5,000–6,000 monthly. New protections for tenants (such as disaster-related delays) have extended timelines for landlords, creating ongoing financial strain.
Listings: As of September 2025, Los Angeles had 17,194 rental listings on Realtor.com, while Apartments.com showed more than 32,000 available units, signaling an abundant supply despite tight vacancy.

Active Listings Snapshot (Sept 2025)

Market Segment	For Sale	For Rent	Median Prices/Trends
Los Angeles (city)	11,977	17,194	Median listing: $1.2M (↓4.1% YoY)
San Gabriel Valley	544	N/A	Median sale: $1.0M (↓12.9% YoY)
Greater LA Area	12,000+	30,000+	Growing supply, slower demand

Quick Takeaways

Sales volume is slowing, especially in San Gabriel Valley, where prices dropped nearly 13% YoY.
Inventory is climbing for both home sales and rentals across much of LA.
Eviction filings remain elevated, highlighting ongoing rental payment struggles.
Forecasts suggest mild recovery in 2026, with modest 3%-5% price growth if interest rates ease.

Final Thoughts

The Los Angeles real estate market in 2025 is in a cooling phase, marked by price corrections, lower sales volumes, and a rental sector facing both high demand and payment risks. While landlords and sellers face short-term challenges, long-term fundamentals remain steady, and 2026 could mark the beginning of a rebound.

For buyers, certain neighborhoods are becoming more affordable, creating opportunities. For investors and landlords, careful navigation of the eviction landscape and high rental supply will be key in the year ahead.

Sources:

Disclaimer:
The information provided in this article is based on our research from publicly available sources and market reports. While we strive for accuracy, we do not guarantee the completeness or correctness of the information. Readers are encouraged to conduct their own research and consult with qualified professionals before making any real estate or financial decisions. We do not assume any liability for actions taken based on the content of this article.