The condo market in Los Angeles has gone ice cold as rising costs stall demand \u2014 fueling concerns that it could spell doom for the rest of the city\u2019s housing market.<\/p>\n
Sales of LA condo units during the first two months of the year have fallen to a 20-year low, even as prices dropped nearly 5% in February, according to a report from ATTOM. With decreasing demand, condo prices have also hit a 12-year low.<\/a><\/p>\n \u201cWhen the housing market softens, and it has, condos usually go softer faster than single-family homes,\u201d Richard Green, director of the Lusk Center for Real Estate at USC, told the Los Angeles Times<\/a>. \u201cPeople prefer single-family houses to condos.\u201d<\/p>\n The report says it would \u201ctake households more than 37 years to save for a down payment\u201d on a home in LA at a personal savings rate of 4.6%.\u00a0<\/p>\n Unlike hotter housing markets in California like San Francisco and Sacramento, LA lost about 54,000 residents<\/a> between 2024 and 2025. <\/p>\n \t\t\t\t\t\t\tSign up for the California Morning Report newsletter\t\t\t\t\t\t<\/p>\n \n\t\t\t\t\t\t\tCalifornia’s top news, sports and entertainment delivered to your inbox every day.\t\t\t\t\t\t<\/p>\n \t\t\t\t\t\tThanks for signing up!\n\t\t\t\t<\/p>\n Fewer buyers could have contributed to the city\u2019s ongoing housing lull, as well as its status as the least accessible housing market<\/a> due to median incomes in the city lagging well behind the typical home value.<\/p>\n The report says it would \u201ctake households more than 37 years to save for a down payment\u201d on a home in LA at a personal savings rate of 4.6%.\u00a0<\/p>\n In one bright sign for LA renters, median rents recently fell to a four-year low. Condos in particular skyrocketed in price during the pandemic but have stalled recently.<\/p>\n Lackluster apartment construction numbers in LA are also likely responsible for the waning condo market. Los Angeles Times via Getty Images<\/p>\n \u201cThe market is experiencing more of a pricing plateau than a major correction,\u201d Rob Barber, chief executive of Attom, told the LA Times.<\/p>\n The expenses of owning a condo are also a roadblock. Rising HOA fees haven\u2019t helped. Bloomberg via Getty Images<\/p>\n Lackluster apartment construction numbers in LA are also likely responsible for the waning condo market.<\/p>\n New apartment construction numbers plummeted 33% in the final quarter of 2025 compared to three years ago, while cities like San Diego jumped 10% in the same period.<\/p>\n The expenses of owning a condo are also a roadblock. Rising HOA fees haven\u2019t helped.<\/p>\n \u201cIn California, it\u2019s becoming clearer that they are more expensive to own than people think,\u201d Green said. \u201cWe haven\u2019t built much lately. The condominium market is generally older, 40- to 50-year-old places, and they need a lot of work. A lot of capital improvements are coming home to roost.\u201d<\/p>\n But Barber remains optimistic that the condo market isn\u2019t set to fall off completely, which would cause significant trouble for the housing market.<\/p>\n \u201cCondo buyers tend to be more rate sensitive and are also dealing with rising HOA fees, insurance costs and stricter financing conditions,\u201d Barber said. \u201cAt the same time, condo prices have remained relatively resilient, suggesting demand has cooled but not disappeared altogether.\u201d<\/p>\n Download The California Post App, follow us on social, and subscribe to our newsletters <\/strong><\/p>\n California Post News<\/strong>: Facebook<\/a>, Instagram<\/a>, TikTok<\/a>, X<\/a>, YouTube<\/a>, WhatsApp<\/a>, LinkedIn<\/a> \t\t\t\t\t\t
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