The Los Angeles condo real estate market continues to navigate a shifting landscape marked by fluctuating demand, evolving buyer preferences, and a competitive inventory. According to the latest research from Polaris Pacific, the median price for an existing condominium in Los Angeles reached $925,000 in the three months ending November 30, 2024, reflecting a 1.6 percent increase compared to the previous year. However, the market has shown signs of deceleration, with total resales declining by 10.2 percent year-over-year. Additionally, the number of days a property remains on the market has increased to 45, indicating a more balanced buyer-seller dynamic.
Real Estate Prices See a Slight Decrease
Los Angeles real estate prices have experienced subtle shifts over the past year, with per-square-foot values displaying a range of trends across different building categories.
Low-rise buildings, defined as those with four stories or fewer, recorded an average price per square foot of $921, a decrease of 0.6 percent from the previous year. Mid-rise buildings, which range from five to twelve stories, saw an average price per square foot of $857, a decline of 2.7 percent. High-rise buildings, consisting of thirteen or more stories, had an average price per square foot of $914, a decrease of 1.6 percent.
These figures highlight a cooling market across various property types, with mid-rise developments experiencing the most notable decline.
Varying Price Trends Across Districts
From a district perspective, price trends have varied significantly. The Westside has experienced a 3.8 percent increase in sales activity, whereas Downtown Los Angeles and Hollywood have witnessed declines of 8.8 percent and 4.5 percent, respectively. This divergence underscores the evolving preferences of homebuyers and investors, who are increasingly prioritizing location, amenities, and long-term value.
Investor and cash-buyer activity remains a key factor in shaping the market. Over the past three months, all-cash transactions accounted for 35.7 percent of total sales, a slight decline from 37.6 percent in the same period last year. Similarly, investors comprised 31.9 percent of buyers, down from 33.3 percent in 2023. This trend suggests that while investors continue to play an influential role, individual homebuyers are gaining greater representation in the market.
New Construction and Inventory Trends
Despite shifting demand, the supply of new condominiums continues to expand. According to the report, 963 unsold new condominium units were on the market as of December 2024, a 2.3 percent increase from last year. The majority of this inventory is concentrated in high-profile developments such as Metropolis Tower II, Century Plaza North Tower, and Perla.
Beyond current inventory, the future pipeline remains robust, with 1,484 condominium units under construction. However, in a broader context, apartment construction significantly outpaces condominium development, with 26,079 apartment units currently under development across Los Angeles. This growing rental market suggests a shift in investment priorities, with developers responding to increasing demand for flexible housing options.
According to the Polaris Pacific report, several premier condominium projects in Los Angeles are drawing significant buyer interest. Metropolis Tower II, located in Downtown LA, offers an array of amenities, including a heated swimming pool, a state-of-the-art yoga studio, and an exclusive sky deck that provides breathtaking city views. Prices range from $400,000 to $2,000,000.
Perla, a 35-story residential tower with 450 units in the Broadway Theater District, offers views of the Downtown skyline and the Hollywood Hills. The Ainsley, part of The Melrose Collection in Hollywood, is an upscale boutique development with high-end materials and spacious outdoor terraces. Pendry Residences, nestled in the heart of Hollywood, features 40 units with floor plans ranging from 2,900 to 6,000 square feet.
Outlook: LA Condo Market Poised for Balanced Growth in 2025
The Los Angeles condominium market will likely continue its gradual adjustment toward equilibrium in 2025. While price appreciation has slowed in some areas, demand remains strong for well-located and amenity-rich developments. With new construction expanding and investor activity slightly tapering, buyers and sellers can engage in a market that is transitioning toward a more stable and sustainable trajectory.
The report concludes that the increasing inventory offers homebuyers greater selection and bargaining power. Sellers may need to adjust expectations and pricing strategies to remain competitive. On the other hand, developers will need to understand buyer demand and focus on high-value projects with strong amenities to achieve long-term success.
