Los Angeles Housing Forecast 2026: Buyers & Sellers

The Los Angeles housing market is entering a new phase in 2026—less volatile, more deliberate, and driven by fundamentals rather than extremes. After several years of rate shocks, inventory constraints, and uneven price movement, the market is gradually normalizing.

This does not mean a crash. It also does not mean runaway appreciation.

It means opportunity, for buyers who understand timing and for sellers who price correctly.

Will Home Prices Go Up or Down in Los Angeles in 2026?

Los Angeles home prices are expected to remain largely flat to modestly positive in 2026, with most forecasts pointing to low single-digit appreciation, roughly in the 1%–4% range, depending on neighborhood and property type.

What’s important is where prices move—not just if they move.

• Prime neighborhoods with limited inventory continue to hold value
• Well-located, well-presented homes still attract multiple offers
• Overpriced listings sit longer and adjust downward

In real terms, after accounting for inflation, price growth remains subdued—creating a market where pricing accuracy matters more than market momentum.

What Is Driving the Los Angeles Housing Market Right Now?

The LA market is being shaped by four primary forces:

Mortgage Rates Are Easing-but Not Returning to 3%

Mortgage rates are expected to gradually settle near the low-6% range in 2026. While this is meaningfully better than peak levels, it is still far above pandemic lows.

The result:
• Buyers remain payment-conscious
• Sellers no longer benefit from automatic demand
• Pricing discipline replaces optimism

Lower rates help unlock activity, but they do not justify overpricing.

Inventory Is Improving-But Still Historically Tight

Los Angeles inventory is rising, but supply remains structurally constrained.

Why?
• Zoning restrictions
• High construction costs
• Labor shortages
• Owners holding ultra-low mortgage rates

Even with more listings, LA remains undersupplied relative to population and long-term demand. That scarcity continues to support pricing—but only for homes priced to market.

Insurance and Property Taxes Are Now Major Affordability Factors

Affordability in Los Angeles is no longer just about mortgage rates.

Buyers are increasingly focused on:
• Insurance premiums (especially in fire-prone areas)
• Property tax reassessments
• HOA dues
• Long-term operating costs

These non-mortgage expenses directly affect buying power and are influencing what buyers are willing to pay—especially for larger or older homes.

Buyer Behavior Has Become Highly Analytical

Today’s Los Angeles buyers are sophisticated.

They compare:
• Price per square foot
• Days on market
• Recent closed sales—not list prices
• Adjacent neighborhoods and micro-markets

This has created a bifurcated market:
• Correctly priced homes sell quickly
• Aspirational pricing leads to long market times and reductions

Is 2026 a Good Time to Buy a Home in Los Angeles?

For many buyers, yes, if expectations are realistic.

Why 2026 favors buyers:
• Slower price growth
• Slightly lower mortgage rates
• More inventory choices
• Less emotional competition

Buyers who focus on value, not headlines, are finding leverage that did not exist in prior years.

Is 2026 a Good Time to Sell a Home in Los Angeles?

Yes, but only with the right strategy.

The days of testing the market are over. Sellers who succeed in 2026 will:

• Price based on recent closed sales, not aspirational listings
• Invest in professional presentation
• Understand buyer psychology
• Market aggressively from day one

Homes that launch correctly still sell well. Homes that don’t get repositioned quickly.

How the Los Angeles Housing Market Is Expected to Perform by Neighborhood

Los Angeles is not one market, it’s hundreds of micro-markets.

Expect:
• Stronger performance in walkable, supply-constrained areas
• Stability in established family neighborhoods
• More price sensitivity in fringe or insurance-heavy zones

Neighborhood-level analysis matters more than citywide averages.

Will Los Angeles See a Housing Crash in 2026?

There is no data supporting a housing crash in Los Angeles.

Key protections:
• High homeowner equity
• Low forced-sale risk
• Strong employment base
• Chronic underbuilding

What we are seeing instead is a pricing reset toward fundamentals, not distress.

The Los Angeles Housing Market in 2026

The Los Angeles housing market in 2026 is defined by stability, selectivity, and strategy.

There is still a shortage of new construction, which continues to fuel buyer demand across the market. Homes that are priced correctly and marketed strategically are selling, many with multiple offers. There has been no meaningful slowdown in 2025, and as mortgage rates continue to decline, market activity is expected to strengthen further.

While housing inventory may increase modestly, the ongoing lack of new construction remains a major constraint. As a result, price appreciation is expected to outpace last year, driven by lower borrowing costs, pent-up buyer demand, and limited supply, particularly in well-located neighborhoods.

Los Angeles Is a City of Micro-Markets

While the Los Angeles housing market shares broad themes, tight supply, easing mortgage rates, and analytical buyers, price behavior varies dramatically by neighborhood and city. Appreciation is not uniform across Los Angeles.

Some areas are driven by:

• Extreme supply constraints

• School districts and walkability

• Coastal and lifestyle premiums

Others are more sensitive to:

• Pricing accuracy

• Insurance and operating costs

• Buyer affordability thresholds

To illustrate how this plays out in real terms, below is a city-by-city look at home price appreciation in key Westside and luxury Los Angeles markets, based strictly on MLS closed single-family home sales.

Santa Monica Home Price Appreciation in 2025

Based on closed single-family home sales in Santa Monica and changes in average sold price per square foot from the beginning of 2025 through the most recent closings, Santa Monica experienced approximately 2%–3.5% home price appreciation in 2025.

Santa Monica Home Price Appreciation Forecast for 2026

Santa Monica is positioned for moderate price growth in 2026, assuming easing mortgage rates and increased transaction volume.
Projected 2026 appreciation: +3% to +5%

Brentwood (90049) Home Price Appreciation in 2025

Based on closed single-family home sales in Brentwood (90049) and year-to-date changes in sold price per square foot, Brentwood experienced approximately 1%–3% home price appreciation in 2025.

Price growth reflects Brentwood’s wide pricing spectrum, longer days on market at higher tiers, and continued demand for location and lot size.

Brentwood Home Price Appreciation Forecast for 2026

Projected 2026 appreciation: +2.5% to +4.5%

Beverly Hills Home Price Appreciation in 2025

Based on closed single-family home sales in Beverly Hills, changes in average sold price per square foot show that Beverly Hills experienced approximately 1%–2.5% home price appreciation in 2025.

Entry-level luxury homes outperformed ultra-high-end estates, where price discovery occurred through longer market times.

Beverly Hills Home Price Appreciation Forecast for 2026

Projected 2026 appreciation: +2% to +4%

Bel Air Home Price Appreciation in 2025

Based on closed single-family home sales in Bel Air, price-per-square-foot trends indicate that Bel Air experienced approximately 0%–2% home price appreciation in 2025.

Bel Air remains a low-velocity, long-hold market where pricing stability matters more than short-term movement.

Bel Air Home Price Appreciation Forecast for 2026

Projected 2026 appreciation: +1.5% to +3.5%

Culver City Home Price Appreciation in 2025

Based on closed single-family home sales in Culver City, average sold price per square foot increased enough for Culver City to experience approximately 2.5%–4% home price appreciation in 2025.

Relative affordability, job proximity, and strong buyer demand supported pricing throughout the year.

Culver City Home Price Appreciation Forecast for 2026

Projected 2026 appreciation: +3% to +5%

Venice Home Price Appreciation in 2025

Based on closed single-family home sales in Venice, price-per-square-foot trends show Venice experienced approximately 1.5%–3% home price appreciation in 2025.

Newer construction and prime locations outperformed older or transitional inventory.

Venice Home Price Appreciation Forecast for 2026

Projected 2026 appreciation: +2.5% to +4.5%

Palms / Mar Vista Home Price Appreciation in 2025

Based on closed single-family home sales in Palms and Mar Vista, changes in average sold price per square foot indicate the area experienced approximately 2%–4% home price appreciation in 2025.

Entry-level Westside demand and strong buyer absorption supported prices.

Palms / Mar Vista Home Price Appreciation Forecast for 2026

Projected 2026 appreciation: +3% to +5%

West Los Angeles (90025) Home Price Appreciation in 2025

Based on closed single-family home sales in West Los Angeles (90025), price-per-square-foot data shows the area experienced approximately 1.5%–3% home price appreciation in 2025.

Well-priced homes continued to sell efficiently, while aspirational pricing extended days on market.

West Los Angeles Home Price Appreciation Forecast for 2026

Projected 2026 appreciation: +2.5% to +4.5%

Westwood / Century City Home Price Appreciation in 2025

Based on closed single-family home sales in Westwood and Century City, average sold price per square foot trends show the area experienced approximately 2%–3.5% home price appreciation in 2025.

UCLA proximity, employment centers, and international buyer interest supported pricing.

Westwood / Century City Home Price Appreciation Forecast for 2026

Projected 2026 appreciation: +3% to +5%

2025 appreciation figures reflect actual market performance based on MLS closed single-family home sales and changes in average sold price per square foot from the beginning of 2025 through the most recent closings. Ranges reflect variation in sales mix across neighborhoods and price tiers, not projections.

Final Take: What the 2025–2026 Data Tells Us About Los Angeles Housing

The Los Angeles housing market is not experiencing a boom or a bust—it is experiencing normalization. In 2025, most prime Westside and luxury markets recorded real, modest appreciation based on closed sales, not speculation.

Looking ahead to 2026:

• Mortgage rates easing into the low-6% range are expected to improve activity

• Inventory remains constrained by limited new construction

• Buyer demand continues to favor well-located, well-priced homes

The result is a market where strategy matters more than timing. Homes that are priced correctly and positioned thoughtfully are selling. Homes that rely on optimism rather than data are sitting.

Los Angeles remains a city of opportunity, but only for those who understand its micro-markets, not just the headlines.

If you’re considering buying or selling in Los Angeles, understanding how your specific neighborhood is performing, not just the citywide average, can make a meaningful difference. I work with buyers and sellers across Los Angeles to analyze pricing, buyer behavior, and recent closed sales at the micro-market level.

If you’d like clarity on where your home fits in today’s market, feel free to reach out.