Los Angeles Home Prices Up 9% Over Last Year, Surpassing National Trends

Median home prices in Los Angeles surged to $870,000 in the second quarter—up 9% from the same period last year—marking the city’s fastest annualized jump since 2021, according to data released Wednesday by the California Association of Realtors.

The sharp rise comes at a time when soaring mortgage rates and record summer heat might have been expected to cool buyer appetites. Instead, a tight market, robust demand in sought-after eastside neighborhoods, and a wave of smaller accessory dwelling units (ADUs) are driving values higher—pushing out many first-time buyers and reigniting debate over housing affordability in the city.

Eastside and Silver Lake Lead Gains

Silver Lake has seen median single-family home prices climb to $1.31 million this June, up from $1.17 million last summer, according to local brokerage Nourmand & Associates. In Boyle Heights and nearby East LA, once known for relative affordability, recent sales have averaged $750,000—a 14% gain year-on-year. There, Eastmont Avenue and First Street have become hotspots for single-family flips and new ADU construction, as investors cash in on permitted second units and new families move east seeking more space for their money.

"The market hasn’t let up since spring," said Tania Gomez, a managing agent at Westside Properties, by phone. "Even with the heat and higher borrowing costs, we’re routinely seeing ten or more offers on homes in Glassell Park and Highland Park, pushing final sale prices 5% to 10% above list." Several agents noted that listings near Echo Park Lake and along Rowena Avenue in Silver Lake tend to vanish within a week.

Lack of Supply, Steadfast Demand

LA County’s active property listings are down 18% compared to last June, per figures from online marketplace Redfin. With fewer than 7,200 homes on the market citywide in late June—compared with 8,700 at the same point in 2023—competition has intensified even as the Federal Reserve’s policy rate remains stuck at 5.25%. "Inventory is the central story," explained an analyst at the UCLA Anderson School of Management. Despite the construction boom in ADUs—over 7,900 permits filed in 2025 alone—new units remain a tiny slice of the market and have yet to make a dent in overall prices.

Meanwhile, luxury sales from Beverly Hills to Bel Air remain resilient. The priciest transaction on record this quarter: a $35 million estate on Angelo Drive, which changed hands in early May, underscoring continued demand at the top end despite global financial jitters and patchy economic signals from Europe and Asia.

Looking ahead, brokers expect price growth to moderate if interest rates rise again or if the heatwave now gripping the Southland intensifies into wildfire season. For would-be buyers, the advice remains unchanged: get pre-approved, move fast, and consider looking east of the 110 freeway, where relative bargains persist in pockets of El Sereno and Lincoln Heights. Meanwhile, homeowners have rarely had it better—at least on paper. The summer of 2026 has proved, once again, that the Los Angeles market is nothing if not resilient.