Los Angeles-Long Beach-Anaheim, CA
Executive Summary
Los Angeles's housing market shows elevated risk, ranking 37th of 287 metros. The market recently entered Recovery. Inventory is growing moderately (+15% YoY) with stable liquidity. Early signs of stabilization — conditions may favor patient buyers.
Los Angeles experienced a market correction from early 2025 through mid-2025. The market is currently recovering.
Inventory is growing at a moderate +15% pace with homes taking +6% longer to sell — within normal ranges.
Rent growth is roughly keeping pace with price appreciation, suggesting valuations are not stretched.
Cycle Phase
Market conditions are rebuilding after a correction period
Key Dynamics
Risk is primarily driven by migration and affordability, while permits per capita provides the most support.
Top Drivers
Market Signals
Inventory is growing at a moderate +15% pace with homes taking +6% longer to sell — within normal ranges.
Liquidity
Valuation
Factor Details
12-month HPI change — higher = overheating
YoY permit change — higher = supply pressure
Permits per 1,000 residents — higher = overbuilding risk
Mortgage payment / income — higher = more burdened
12-month employment change (risk inverted)
Net AGI migration (risk inverted)
National Context
Credit Conditions
Credit Regime
Healthy recovery. Credit is flowing normally and transactions are steady — conditions favor continued rebuilding.
Supply Pipeline
Supply Regime
Supply pipeline is building up while credit remains available. New units are accumulating in the system — watch for delivery pressure in coming quarters.
Local Signals
Metro Permit Activity
Permit Activity
ElevatedRaw signal — not the composite percentile
Relative to 2016–2019 norms for this metro
Above-normal building activity with healthy demand. Balanced expansion — the market is absorbing new supply without stress.
Employment Concentration
Employment
DiversifiedInternal Structure
County-level structural analysis.
County-level structural analysis is not available for this metro due to fewer than 3 qualifying counties.
Score History
| Month | Score |
|---|---|
| 2025-11 | 57 |
| 2025-10 | 58 |
| 2025-08 | 57 |
| 2025-05 | 57 |
| 2025-03 | 61 |
| 2025-01 | 64 |
| 2024-11 | 61 |
| 2024-09 | 62 |
| 2024-07 | 64 |
| 2024-04 | 62 |
| 2024-03 | 62 |
| 2024-01 | 58 |
| 2023-10 | 62 |
| 2023-08 | 59 |
| 2023-06 | 58 |
| 2023-04 | 57 |
| 2023-02 | 56 |
| 2023-01 | 55 |
| 2022-11 | 54 |
| 2022-08 | 54 |
| 2022-06 | 52 |
| 2022-05 | 52 |
| 2022-03 | 49 |
| 2022-01 | 48 |
| 2021-11 | 46 |
| 2021-09 | 44 |
| 2021-07 | 45 |
| 2021-06 | 47 |
| 2021-04 | 52 |
| 2021-01 | 59 |
| 2020-11 | 58 |
| 2020-09 | 58 |
| 2020-07 | 58 |
| 2020-06 | 60 |
| 2020-04 | 57 |
| 2020-03 | 52 |
| 2020-01 | 48 |
| 2019-10 | 51 |
| 2019-07 | 49 |
| 2019-06 | 48 |
| 2019-04 | 51 |
| 2019-03 | 53 |
| 2019-01 | 56 |