Appreciation Rates in Los Angeles Over Time (2024)

In this article, we’re taking a look back at the last 30+ years of home value changes in Los Angeles. Plus, we’ll show you how to maximize your appreciation rates over time!

The sales price trend line for single-family homes in LA County tells a story…

You can see the steep increase in home values in the early 2000s, spurred by the dot-com economy and loose mortgage lending requirements. Then there’s the dramatic drop from the housing market collapse, followed by a steady recovery. Then, in 2020, prices shot up again as economic concerns about the COVID pandemic prompted historically low mortgage interest rates. And now, we’re experiencing a slight market correction, bringing home prices back to more sustainable ranges.

2022 | $799,670
2021 | $826,500
2020 | $660,000
2019 | $641,340
2018 | $588,140
2017 | $577,690
2016 | $522,520
2015 | $502,750
2014 | $464,650
2013 | $439,830
2012 | $367,400
2011 | $306,950
2010 | $328,140
2009 | $332,267
2008 | $318,075
2007 | $505,577
2006 | $585,447
2005 | $534,443
2004 | $459,461
2003 | $378,200
2002 | $307,489
2001 | $255,191
2000 | $221,340
1999 | $197,781
1998 | $192,491
1997 | $180,722
1996 | $167,550
1995 | $178,186
1994 | $195,359
1993 | $201,134
1992 | $214,005
1991 | $222,829
1990 | $212,855

Appreciation is never linear; there are always jumps and dips as properties grow in value over time.

Consider the appreciation rates by year in Los Angeles County. Median sales prices from the end of 1990 to the end of 2022 indicate an appreciation rate of 275.69%. That averages to an 8.62% increase per year over the last 32 years. But property owners certainly haven’t seen a stable appreciation of 8.62% every year. In fact, in 2008, LA homeowners saw a historic decline of 37.09% (spoiler alert: property values bounced back as they always do).

The appreciation rates look erratic when viewed year-by-year:

The dramatic drop from the housing market collapse may be the first thing you notice when looking at the graph of appreciation rates in Los Angeles over time. But then you’ll notice how much more common it is to see years with positive appreciation rates. And how often we see impressively high appreciation rates in LA. In 8 of the last 32 years, appreciation has exceeded 15%. That’s right; annual appreciation has exceeded 15% a quarter of the time over the last three decades.

2022 | -3.25%
2021 | 25.23%
2020 | 2.91%
2019 | 9.05%
2018 | 1.81%
2017 | 10.56%
2016 | 3.93%
2015 | 8.20%
2014 | 5.64%
2013 | 19.71%
2012 | 19.69%
2011 | -6.46%
2010 | -1.24%
2009 | 4.46%
2008 | -37.09%
2007 | -13.64%
2006 | 9.54%
2005 | 16.32%
2004 | 21.49%
2003 | 23.00%
2002 | 20.49%
2001 | 15.29%
2000 | 11.91%
1999 | 2.75%
1998 | 6.51%
1997 | 7.86%
1996 | -5.97%
1995 | -8.79%
1994 | -2.87%
1993 | -6.01%
1992 | -3.96%
1991 | 4.69%
1990 |

For homeowners and investors, Los Angeles represents impressive returns. And this is before you even factor in the growing rental rates in LA, which contribute to passive income opportunities for rental property owners.

The appreciation rates in this article represent “market appreciation” (the increase in property values created by general economic conditions). This is automatic in that you don’t have to do anything special to benefit from this growth.

But if you’re looking to get a head start on appreciation for your assets, consider forced appreciation. Forced appreciation is when you increase a property’s worth by adding value to it. There are a number of strategies for forcing appreciation, including:

The appreciation rates in Los Angeles over time present a compelling narrative of growth, challenges, and resilience.