This is the reality, the market is stagnant across the country, and in LA. Of course there are pockets of brisker activity (Think South Pasadena, Silverlake), but everything is sitting on the market longer and price drops are the norm.
It's no surprise when you think about it. The prices shot up to unsustainable levels from 2018-2023. Then in 2024 the mortgage rates shot up along with post-COVID inflation. Then in 2025 the property insurance rates shot up. AI fears resulted in job insecurity and layoffs. More inflation. Wars raged into 2026 and companies continue to have layoffs. So here we are.
So what's the plan? Well Sellers need to be realistic that prices are not at the height. If you've made a profit, consider yourself lucky. Don't expect to make a profit if you've bought in the past 18-20 months. You'll be lucky to call it even.
Buyers should be buying up. There has never been a better time than since the GFC (Great Financial Crash) to buy properties in a non-multiple offer market, as well as a market in which there are price drops, and sellers are willing to do rate buydowns for buyers.
KPC Group Buys "Graffiti Towers" for 500M
They are few and far between, but live/work properties are wonderful with virtually only upsides.
- You can legally operate a business out of them, with some restrictions of course (can't be a restaurant if it's not zoned for a restaurant).
- Tax benefits for sole proprietors, LLCs, etc (Ask your CPA about it!)
- Often converted or adapted re-use projects, making them more sustainable than other properties/buildings
- As an owner, you have the choice to live in, or work in, or BOTH in the property (some examples include graphic designers, attorneys, accountants, editors, fashion designers, artists, company showrooms, filming locations)
- As a landlord, you have a larger audience pool of renters, from people who want to live and/or work or both in the property
- As a seller, you can market to both residential and commercial buyers
- Unique communities in which there is an intersection of lifestyle and commerce in one place
- Oftentimes, values are higher in some of these live/work buildings due to their hybrid nature
- Ideal for hybrid work-from-home users
And while there are not too many of them, some areas have a higher concentration of them.
- DTLA has a large concentration of over 20 live/work zoned buildings.
- Hollywood has live/work buildings dotted around the neighborhood
- Culver City
- Pasadena
2026 Market Expectations According to Redfin
City Approves LA Convention Center Expansion
Work to start on modernization and expansion the the Convention Center to begin this month. https://www.
It's been a rough ride in housing, especially compared to the years before when multiple offers were the norm. But we're no longer in a pandemic, we're still in recovery from the fall-out.
On top of that, interest rates have remained high and job security is at an all-time low since the dot com bubble days.
Housing prices have dipped about 0.4% on average since 2024 and is expected to stay flat until the middle of 2026, when further interest rate drops should help pick things up.
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