_LA Fever: Knight Frank launches Los Angeles Focus Report 2021

Los Angeles never stands still.

Just like the celebrities that make the City of Angels their home, LA plays the reinvention card to its advantage, forever ready for its close-up.

It is this vital characteristic that will ensure the city prospers post-pandemic and beyond, remaining a desirable destination for prime property homeowners seeking a genuine work-life balance.

The challenges of Covid-19 have led to a greater focus on outdoor living, environmental awareness, and health and wellness. As we permanently reassess lifestyles, this is unlikely to change even once the world emerges from the global health crisis.

Los Angeles ticks all the boxes, accommodating the appetite for space for those who can afford it with its large and spacious homes with life-affirming mountain and sea backdrops, as we look to better how and where we live through the post-pandemic lens of longer-term wellbeing.

Undiminished appeal

A remarkable eight of the 25 US cities with the healthiest residents are in California, according to a recent survey.

As health and wellness became a key focus, the pandemic-induced reassessment of lifestyles saw sales activity surge in 2020 with super prime sales (US$10 million+) increasing 26% year-on-year. Across LA County, the number of signed contracts increased 39% in the year to March 2021.

Prime property prices in Los Angeles rose nearly 8 per cent in 2020, with the city recording 10 consecutive years of price growth, according to Knight Frank’s International Residential Index.

And there’s every reason to believe prices will keep rising in Los Angeles in the prime, super prime and ultra prime markets.

A key driver of this price growth is the city's enduring appeal among international buyers, many of whom have been unable to travel in 2020 due to global travel bans.

Expats voted Los Angeles the sixth most popular city to live and work in, suggesting that once restrictions ease, foreign nationals will once again look to secure a home on the west coast with buyer appetite yet to diminish. Across LA County, the number of signed contracts increased 39% in the year to March 2021.

Home to 5,507 ultra high net worth individuals (UHNWIs) - those with more than $30 million in US assets - only New York and London have a higher concentration of wealth than Los Angeles.

Above: An LA home

The wide-open spaces coupled with an average of 284 days of sunshine per year, and focus on health and wellness are among the big pull factors, but Los Angeles is actively looking to the future to ensure it remains a compelling destination for people to live in.

Tireless evolution

An example of this desire to improve and reinvent is embodied in renowned architect Frank Gehry’s visionary river project plan, which aims to revitalize the 51-mile channel that runs from Canoga Park to Long Beach, and which was paved over in 1938.

With open spaces, platform parks, green bridges and bike paths included in the plan, the project is likely to help bring a sense of nature into the heart of the city.

And its success will no doubt inspire other forward-thinking projects that will continue to inject life into a city that refuses to accept boundaries in its pursuit of brilliance.

With the Los Angeles Olympics in 2028 prompting significant investment, and the city’s rocketing popularity as a home for start-ups, it’s time to embrace the city that never stands still.

Released today, Knight Frank’s Los Angeles Focus Report presents the latest metrics on the city’s luxury housing market and delves deeper into the findings published in The Wealth Report 2021.

Key findings:

• Home to over 583,000 millionaires, Los Angeles has more millionaires than Hong Kong or Singapore
• Prime prices increased 8% in 2020 - the tenth consecutive year of price growth for Los Angeles
• A year from the start of the pandemic, signed contracts in Los Angeles are up 39% year-on-year
• Cash buyers as a percentage of total sales in Los Angeles slumped from 41% in Q2 2020 to 20% in the final quarter as buyers took advantage of record low mortgage rates
• The city’s key constraint is a shortage of supply – both new construction and listings declined in 2020 with new listings of single-family homes declining 47% in the year to March 2021.
• Only the third city to host the Olympics three times, Los Angeles is set to benefit from a host of transport and infrastructure improvements including the new Automated People Mover, a 2.5 mile train linking LAX Airport with the city’s light rail lines.
• Los Angeles is set to enter a new phase of reinvention with wellness and sustainability at its core. It has an ambitious plan to reinvent the 51-mile stretch of the LA River, with 20 sites identified in which to invest in green space.

To discuss any property requirements, you might have or broader market conditions do get in touch with US Team.

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