Buying a home in los angeles, california

Quick insights

• Los Angeles has an array of beautiful and culturally diverse neighborhoods, ranging from cozy suburban homes to upscale beachfront condos.
• Whether you’re seeking a family-friendly haven with parks and good schools like Brentwood or Pasadena or crave the lively urban buzz of Downtown LA for young professionals, there’s a neighborhood to match every taste and interest.
• You can appreciate the richness of Los Angeles’ diverse communities, visit natural landscapes like the Santa Monica Mountains and indulge in a variety of cuisines like Mexican food trucks in Boyle Heights or Korean BBQ at Quarters Korean BBQ.

What to consider when buying a home in Los Angeles

Los Angeles is one of the most diverse metropolitan areas in the nation with an incredible real estate landscape. Of course, the Hollywood Hills area is very well-known, but there is much more to Los Angeles including spectacular neighborhoods like Silver Lake, Santa Monica and Pasadena.

While creating your personal home buying checklist, there are a few factors to consider. The location of your primary residence will depend on your financials, needs and preferences.

• Do you want to live in a walkable neighborhood with convenient public transit options, premium amenities and entertainment close by?
• Do you want to live in a spacious home with a bigger backyard for your kids, relax on your front porch and connect with other families in the area?

As you begin your search, it might be a good idea to prioritize your savings earlier in the process. Calculate one-time and recurring costs associated with buying a home. For instance, you may want to save for down payment, closing costs, mortgage insurance and property taxes. Take a look at this home buying resource to get you started on your search and help you decide on whether to make the move to the City of Angels.

Styles of houses to buy in Los Angeles

Los Angeles is known for its stunning single-family homes. The architectural styles range from Spanish-style, Craftsman, mid-century modern and mediterranean-style homes. Each style of home has a unique personality and distinct features catering to different types of homebuyers. You can find homes with either a classic or modern touch or explore something quirkier and more eclectic that blends elements of Victorian and Revival-style homes.

Although single-family homes are very popular in the city, there are various types of homes such as condos, townhomes, multifamily properties and small-lot homes. 

Condos vs. Single Family Homes

You can find different types of condos all throughout the city of Los Angeles. Some of the areas of Los Angeles with many condo options include Downtown Los Angeles, Silver Lake, Koreatown, Los Feliz, Beverly Grove, Echo Park and Venice.

Condos typically require lower maintenance and flexible living compared to single family homes. A potential benefit of living in a condo are the top-notch amenities such as a swimming pool, fitness center, coworking space and community kitchen. Some of the possible drawbacks are Homeowner Association (HOA) fees, increased rules, lack of privacy and a smaller living space.

Some of the potential benefits of living in a single-family home are extra square footage, a quieter environment, space for additional family members, enhanced privacy and the opportunity to renovate. Some of the possible drawbacks of living in a single-family home include ongoing maintenance costs, sole responsibility for repairs and higher taxes.

Pros and cons of living in Los Angeles

Los Angeles is a city full of amazing opportunities, rich cultural diversity, world-famous attractions and a welcoming ambiance. According to Statista, the population in the Los Angeles metro area is nearly 13 millionftn-1. Some of the benefits of living in Los Angeles include:

• Diverse job market: Los Angeles may be known for its large footprint in the entertainment business, but there are numerous thriving industries from technology and healthcare to aerospace and fashion.
• Culture: Los Angeles’ diversity is reflected in the city’s vibrant and unique social scene. You can experience a range of festivals, cultures and different cuisines.
• Warm climate: With year-round warm temperatures, the options are endless. You can grab a blanket and relax on Venice Beach or admire natural beauty on a coastal hike. Pay a visit to Los Angeles’ own Griffith Park, which is one of the largest municipal parks in the USA and a great place to take in views of the Hollywood Sign.
• Entertainment: Los Angeles is home to many of world-famous attractions such as Universal Studios Hollywood, Santa Monica Pier, San Gabriel Mountains and forest preserves. Sports fans who love the thrill of professional competition can see the Los Angeles Dodgers, Los Angeles Lakers or visit the Rose Bowl stadium.

A few potential disadvantages of living in Los Angeles are as follows:

• Higher cost of living: According to Payscale, the cost of living in Los Angeles is 51% higher than the national averageftn-1.
• Traffic congestion: Traffic jams and roadwork can have an impact on your daily commute. Additionally, unlike cities such as New York and Chicago, many Los Angeles residents consider it necessary to own a car to adequately get around.
• Natural disasters: Los Angeles is prone to natural disasters such as floods, fires and earthquakes.

Average cost of living in Los Angeles

The cost of living is higher for Los Angeles residents compared to the national average. You can expect to pay more for housing, groceries, transportation, utilities and healthcare expenses. The higher cost of living can be partially offset by the average household income in Los Angeles. According to Housing Anywhere, the average household income in Los Angeles is $120,272 a year in the county and $117,701 in the City of Los Angelesftn-1.

One of the most accessible options for navigating the city is by taking advantage of the public transportation system. Buses, trains, bikes and ride-sharing programs make it convenient for you to travel throughout the city. High fuel prices and inflated car insurance prices can make owning a car more expensive compared to alternative options.

Cost of living in Los Angeles vs. New York City

There is one aspect that Los Angeles and New York City have in common: High cost of living. As mentioned above, the cost of living is higher in Los Angeles compared to other areas within the United States. You can create a cost of living comparison chart to get a more accurate breakdown of each spending category, but both cities are relatively expensive.

Average house price in Los Angeles

Home and rent prices in Los Angeles are higher than the national average and vary greatly depending on the neighborhood you reside in. According to Redfin, as of March 2024, the median home price was $983,000ftn-1. There are many factors that can influence housing prices including location, market demand, current interest rate climate and inventory.

Down payment for a house in Los Angeles

The average down payment for a house typically ranges between 15%-20% of the purchase price but can vary depending on the lender and your financial profile. Luckily, there are several down payment assistance programs for first-time homebuyers. These different homebuyer assistance programs include:

• Habitat For Humanity Los Angeles Downpayment Assistance Program: Eligible households can qualify for up to $100,000 in mortgage assistance to help with the down payment on a single-family home, condo or townhome.
• Los Angeles Housing Department Low Income Purchase Assistance (LIPA): A program for first-time, low-income homebuyers to help them finance their first home. Recipients can receive up to $161,000 for down payment, closing costs and acquisition.
• Los Angeles County Development Authority (LACDA): A program for low- and moderate-income households with down payment assistance via the Affordable Homeownership Program.

Down payment assistant programs can speed up your path to homeownership and save you some of the upfront expenses associated with buying a home. Creating a budget focused on your savings goals and reducing expenses can help you significantly on this journey.

Financing options to buy a home

There are different financing options available to prospective homebuyers including conventional mortgages, fixed-rate mortgages, adjustable-rate mortgages^{ec-arm_hl000012}, government-backed loans and jumbo loans. The most common type of loan is the 30-year mortgage. Depending on the mortgage company, you may have the option to take out a Federal Housing Administration (FHA) loan^{fha-mentioned-hl000046}, Veterans Affairs (VA) loan^{ec-va-hl000068} or Jumbo loan^ftn-1. Given the high home prices in Los Angeles, you may need to  qualify for a jumbo mortgage when looking to purchase a more expensive home.

What is it like living in Los Angeles

You can experience so much living in Los Angeles. The entertainment options are bountiful. After all, Los Angeles is known for its entertainment industry. You can try a new vegan restaurant, go on a behind-the-scenes studio tour at Universal Studios, check out nearby coastal cities like Santa Barbara or explore the inland allure of the California desert beginning with Joshua Tree. One of the outstanding benefits of living in such a remarkable city is the multicultural community and cultural diversity. These diverse and inclusive communities contribute to the city’s rich tapestry.

Los Angeles has an exhaustive array of neighborhoods for you to explore and find the one that aligns with your lifestyle, desires and financial situation. The city’s variety of cultures means that you will always have something interesting to explore in your neighborhood. The thriving job market, local shopping centers, sunny climate and unparalleled dining scene are exciting things to consider when determining if Los Angeles is the right move for you.

In summary

Buying a home in Los Angeles comes with its fair share of advantages and disadvantages. Los Angeles provides an exciting and welcoming environment for all types of homebuyers. Consider factors like proximity to your job, lifestyle preferences, affordability and transportation options.

It's important to prepare yourself financially and conduct adequate research. Start with the essentials: Save for a down payment or secure funding from a program, contact a lender to obtain a preapproval letter, find a real estate agent and explore different neighborhoods.