Los Angeles is one of the most expensive cities to live in the United States. Nonetheless, despite its real estate prices appearing exorbitantly high, investors are still making LA the top-ranked market for real estate investments.
Real estate prices in the LA area are largely fueled by professionals in the high-tech and entertainment industries. For families with more moderate incomes or single professionals, it can be difficult to find affordable LA properties to buy, and this fuels the area’s thriving rental economy. Thanks to a great climate, a good job market, and a vibrant and culturally diverse population, people keep heading west, and they all need homes.
Neighborhoods for Real Estate Investment in Los Angeles
Due to the laws of supply and demand, some LA neighborhoods present fantastic opportunities for investors. However, not all neighborhoods are created equal. An expensive zip code is not necessarily synonymous with a healthy investment return, and in many cases, a more affordable neighborhood may actually return a larger yield.
Here are some of the best LA neighborhoods that merit consideration when looking for prime LA real estate investment opportunities.
Downtown LA is the heart of the city and the center of the entertainment, financial, and service industries. It’s a great spot for many young professionals, as it is often where their job is located as well as being a hub of cultural and social activities.
Of the 30,940 occupied housing units in Downtown Los Angeles, a staggering 93.45% are occupied by renters – making this a fantastic area for investors to buy-to-let. Rent here is higher than other LA areas, but residents pay a premium for the convenience of the location.
Located in southwestern LA County, Inglewood may not enjoy the best reputation for neighborhood safety, but that may be about to change. Construction of a new and expensive SoFi football stadium – which is the largest and most expensive around – invites further revitalization of the area. Even if prices have begun to rise in this very diversified Hispanic and African American neighborhood, it is still one of the more affordable areas for single-family homes; it most likely won’t remain so for much longer.
This is a very old LA neighborhood, founded in the 1830s and bordered by the Los Angeles River to the west, and the San Bernardino Freeway (I-10) to the south. Lincoln Heights boasts beautiful Victorian-style residences, and by the beginning of the 20th century became home to a large Italian-American population that has since inspired much of its architecture. Gentrification has been the trend ever since, but it’s still an affordable area, and the Landmark Lincoln Park is a hit for families seeking outdoor activities such as lakeside relaxation and picnicking.
Known as the hipster capital of LA, Silver Lake has a good reputation for safety and is located near downtown which is handy for commuters. Silver Lake offers a winning combination of cuisine, cocktails, and culture.
Ideal for strolling down Sunset Blvd, the neighborhood features numerous trendy restaurants, shops, and cafes. Silver Lake has experienced exponential growth in recent years, so It isn’t as affordable as it once was, and local real estate prices continue to climb. Nevertheless, it’s still a great place for an investment; better to act fast before it becomes one of the priciest spots in the city.
Home to numerous artists, actors, musicians, and creative types, Loz Feliz is a magnet for creative people, and since there is never a shortage of dreamers hoping to make it in LA, there will never be a shortage of tenants and buyers. ‘Feliz’ is Spanish for ‘,’family,’ and the neighborhood was named after the Feliz family that originally owned the area from 1795. Flanked by Silver Lake, Griffith Park, Hollywood, and Hollywood Hills, it’s a popular spot.
Often referred to as NoHo, North Hollywood is close to Hollywood, and is a great second choice if Hollywood itself is a little out of reach. NoHo is filled with art galleries, cafes, shops, bars, restaurants, and studios, and is a popular, up-and-coming neighborhood. Equally as popular for businesses searching for commercial real estate, as it is for hopeful homeowners, NoHo is definitely an attractive area to call home and an appealing location to invest in.
If you’re looking for a real investment opportunity that may require remodeling, consider Cypress Park. It’s densely populated, with the LA River to the south, and is currently experiencing a gradual gentrification thanks to its proximity to Downtown LA, Highland Park.
If you want to invest near a beach, Manhattan Beach is already attracting high income professionals, largely from the tech and service industries. Gourmet restaurants and the beach atmosphere make this an appealing option for those who want (and can afford) a luxury living arrangement. Property prices are high, but demand is continuous and with a current housing shortage, it’s an investors’ market; demand is high and value continues to increase.
LA has everything; it blends culture, diversity, and entertainment, making it an ideal location for investing in real estate across its numerous neighborhoods. If you’re looking for a good investment opportunity, before committing elsewhere, check out LA – where the future is brighter than bright.