Fastest Appreciating Neighborhoods in Los Angeles
The Los Angeles housing market has steadily been increasing over time in recent memory. House values are through the roof in the west coast’s major metropolis. Investing in LA neighborhoods can be tricky, generally involving a high-risk high-return scenario.
The west coast tech boom has made certain that market values stay high, and are getting high. If you want to look at the luxurious homes available in the Los Angeles real estate market, take a look at this stunning Beverly Hills MLS tool.
Now as for the fastest appreciating neighborhoods in Los Angeles, you would be surprised as to which cities made it to this list. Many neighborhoods considered unfavorable have started to see a resurgence, leaving investors to speculate over whether to invest in areas of known for growth or to take a chance on the once unwanted real estate market of certain neighborhoods.
Top 3 Fastest Appreciating Neighborhoods
First on the list is Hermosa Beach. This seaside community is known more for it’s younger party-centric crowd, but recent property value increases have pushed those who can’t afford multimillion-dollar homes, further down the coast.
The median home price in 2015 was 1,693,500 dollars, up 30.9 percent from the previous year. Low housing prices have attracted tech workers from nearby Venice and Playa Vista. The market is poised to continue appreciating, with good schools attracting the middle class and tech workers alike.
The party-centric scene will continue to draw young people, and the infrastructure and location are sure to increase families in the area.
Playa Del Rey
Another beach town, Playa Del Rey has seen similar growth in Hermosa Beach.
Tech types from Playa Vista have been moving into the area, bringing with them a disposable income. The once quite town is starting to see an increase in jobs, most of them due to the extra services the new residents require.
The housing market has a limited amount of homes for sale, causing strong competition between potential residents to secure prime real estate. As a result, home prices have skyrocketed. Compared to a year ago, the median home price increased 26.5 percent, standing at 1,517,500 dollars. The per square foot price increased by 20.1 percent as well, jumping to 636 dollars.
The neighborhood presents a challenge for investors. Pay high and expect an even higher payback? Or just leave it alone and move onto a market with a lower entry price.
An unexpected addition to this list, no doubt, Compton doesn’t conjure up the best of images in many people’s minds. But the notorious neighborhood is experiencing an upswing. Crime is on a sharp decline and the housing market is resurging.
Hit hard by the subprime mortgage crisis, the area’s housing market took a huge downswing. After the economy recovered, a plethora of homes were available on the cheap.
Property values have been since increasing, notching a 14.2 percent growth in 2015. At 274,000 dollars, the median home price is still much lower than Hermosa Beach or Playa Del Rey.
Expect the neighborhoods resurgence to attract people looking for cheap housing who would have overlooked the area in the past. If new homeowners can attract major retailers to the area then Compton stands a chance rapid appreciation. The area’s current biggest problem is overcoming the negative image it’s been labeled with over the past few decades.
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