LA real estate is very complicated. You have so many types of housing, so many different neighborhoods, so many different hubs of commerce, and so much different geography, all within 30-45 minutes of drive time. This is why there's not a blanket answer that represents exacty what went on, and what's going on in LA RE.
We know commercial real estate was killed last year. What do you expect when governments lock down offices, and companies scramble to begin the work from home phase? While most of the mid-to-small commercial buildings were destroyed, some of the high profile buildings in central locations like Culver City, DTLA, and Burbank, were snapped up for pennies by developers who have grand plans, like updated office space for hybrid office/home workers.
One of the industries that killed it in 2020 was residential real estate--mainly for single family homes. We all know the story, everyone fleeing smaller apartments and condos to buy and rent houses with yards and space to work, exercise, etc. I wonder what will happen once gyms and shops are safe to open up, will people get sick of doing everything at home and venture out? For now, we're still riding the single family home wave and prices are slated to go up another 4% from last year.
Condos took a big first hit when the pandemic started, as people left their high rises for sprawl. However, there's also been an influx of people who don't want a huge house to maintain, don't want to live in sprawling neighborhoods in the valley, who want to be closer to the city centers. These folks are buying condos, and that's helped the slower market.
Relocation companies killing it. Another sign of the times. Relocation companies are busy transplanting people to different cities, and this is propping up the rental market as people "try out" areas. So the rental market should be great in 2021, right? Depends on the stock. If you're a single family residence in a great location, the rental should fly off the shelf. If you're a condo in DTLA, you need to up the game because there's lots of competition. Updated appliances, kitchens, bathrooms, interesting amenities--all things that will help in a slower market.
