Update: Impact of COVID-19 on L.A. Real Estate
Headlines for Landlords and Investors
At the end of Summer, pent up demand for housing dramatically transformed the market into a true seller’s market. The number of homes for sale and the sales price of the home boomed.
On the other hand, the past few months have been a rollercoaster for landlords in Los Angeles as they have dealt with a financial fallout and many new mandates brought during the coronavirus pandemic.
The cost of rent has dropped in Los Angeles as the economy recovers.
In Los Angeles, the median asking price for rent dropped 8% for one-bedroom ($2,430 to $2,080) and two-bedroom ($3,310 to $2,880) apartments.
In an effort to keep you up-to-date, we rounded up the latest headlines as the effects of the pandemic continue.
Revolt of the landlords: How big real estate crushed a rent control law
Santa Rosa’s law would have required landlords to pay an annual fee to offset the cost of regulating rents in the city. Opponents said it would cost the city money, fail to alleviate homelessness, make it impossible to evict criminals from apartments and do nothing to build more affordable housing. The measure was defeated.
There’s a pandemic, but Southern California home prices are at record levels
The six-county region’s median price reached $600,000 in August, up 12.1% from a year earlier, according to data released by DQNews. That was the largest percentage increase since 2014 and the third consecutive month during which prices set a new all-time high. Sales rose 2.4% from a year earlier.
Los Angeles’ Largest Landlord Group Requests Injunction Over Eviction, Rent Freeze Moratorium
Los Angeles’ largest landlord group, the Apartment Association of Greater Los Angeles (AAGLA), announced that it had filed a preliminary injunction against the city of Los Angeles to stop the eviction moratorium and rent freeze in the city. The AAGLA argues that the moratorium gives renters benefits such as a place to stay without paying rent, cheaper rent below market price, and other measures that allow renters to stay due to city measures passed in March to stop the spread of COVID-19 and to reduce the number of homeless people during the pandemic.
Here Are The Hottest Housing Markets, Real Estate Stocks In Surprise Covid Boom
Just six months ago, the idea of a housing boom would have seemed ridiculous as millions of Americans were losing their jobs. But low interest rates and the work-from-home trend are stoking real estate stocks and home sales in smaller housing markets.
‘Tsunami’ of hotel closures is coming, experts warn
The Luxe Rodeo Drive is the first high-end hotel in the Los Angeles area to go out of business because of the pandemic, and industry experts point to an unusually high loan delinquency rate among hotel borrowers as a sign that more closures are likely to follow.
The Fall Real Estate Market Is Abnormally Hot As Mortgage Rates Break Records
As the number of homes for sale continues to shrink, new listings are being snapped up quickly. They’re lasting 12 fewer days on the market than they were 12 months ago, according to Realtor.com’s latest housing trends report.