LA will keep adding new housing but prices will continue to rise: report
Los Angeles (Credit: Pixabay, Pexels)
Los Angeles can expect slightly more new housing construction in the future, but residents should also expect higher prices.
The number of residential permits issued in Los Angeles County is expected to grow to 23,061 this year, up from 22,010 last year. That’s according to a new economic forecast from the Los Angeles County Economic Development Corporation. Next year should see another slight uptick in home construction to 23,143.
But the 4.7 percent expected increase in new L.A. County homes from last year to this year is still below the forecasted 5.5 percent increase in home values. Median home prices are expected to clock in at $592,094 in 2018, up from $560,858 last year. In 2019, the median home price is forecasted to rise to $624,901.
Single-family permits continued their declines in 2017, falling to just 25 percent of overall new home construction. Multi-family construction is expected continue to dominate in 2018 and 2019, taking advantage of the high demand for new housing countywide.
Nationwide, new housing construction will follow a similar pattern. The number of residential permits issued is only expected to increase nominally, with most of that stemming from apartment complexes and condominiums.
Employment in the county clocked in a 4.6 percent in 2017, the lowest unemployment rate since 2000. It’s expected to drop down in the next few years to 4.3 percent and 4.1 percent, respectively.
Personal income is also rising, the study found. Real per capita income is expected to rise to $52,080 in 2019, up from $50,650 in 2017.