TerraVue

TerraVue / Markets / Los Angeles, CA

Should you buy or rent in Los Angeles, CA?

Over the past 20 years, Los Angeles home prices have risen 3.60% a year; over the past three, 3.05%. TerraVue's forward estimate, which weights both, is 3.47%. That is 0.55pp below the national average, which matters more the longer you hold.

Past 20 years3.60%actual, per year
Past 3 years3.05%actual, per year
Forward est.3.47%-0.55pp vs national
Median rent$2,689across 93 ZIPs
5 year 5.74% 10 year 6.28% 20 year 3.60% Forward est. 3.47% NATIONAL 4.0%
Annualized appreciation over each look-back window, from FHFA repeat-sales data. “Forward est.” is the blended estimate TerraVue simulates with (60% long-run, 40% recent 3-year).

What this means for a buyer

Appreciation is only one side of the buy-vs-rent question, but it's the side people guess at most badly. At the forward estimate of 3.47% a year, a home in Los Angeles would gain roughly 41% in value over a decade — before any of the costs that actually decide the question: closing costs, maintenance, property tax, the mortgage interest you'd pay, and what your down payment would have earned invested instead.

Worth being explicit about what that estimate is: it blends the 20-year record (3.60%) with the last three years (3.05%), so a market in a sharp recent run-up or correction lands between the two rather than at either extreme. It is an estimate, not a forecast anyone can guarantee — which is exactly why TerraVue simulates a range of outcomes instead of quoting one number.

Rent is the other side. At a median of $2,689, the yearly rent bill in Los Angeles is about $32,268. Whether buying beats that depends almost entirely on the price you'd pay and how long you'd stay — which is what the simulator is for.

Run it on an actual property

This page describes the Los Angeles market as a whole. Whether buying beats renting depends on the price you'd pay, your down payment, and how long you'd stay — TerraVue simulates about 1,000 market scenarios on those inputs and returns the probability, not a single guessed number. It'll start with 91331's real appreciation and rent already loaded.

Analyze a property free →

Appreciation by ZIP code in Los Angeles

Averages hide a lot. Across Los Angeles's 93 ZIP codes, long-run appreciation ranges from -3.58% to 10.65% a year — a spread of 14.2 percentage points. Over a 10-year hold, that difference compounds into a substantially different outcome for two buyers in the same city.

ZIPAppreciation/yrRecent 3yrRentBachelor's+
90015 10.65% 10.67% $2,680 46%
91403 8.79% 14.34% $2,941 65%
90012 8.52% 8.99% $2,487 38%
90057 8.50% 5.99% $1,791 23%
90006 6.75% 8.80% $2,000 21%
90028 6.56% 6.07% $2,629 49%
90077 6.25% 8.13% $11,469 76%
91423 5.91% 9.16% $2,748 61%
90020 5.90% 6.07% $1,925 46%
90035 5.72% 5.96% $3,208 66%
90038 5.30% 6.79% $2,609 37%
90039 5.19% 6.53% $3,182 56%
91436 5.15% 5.68% $5,861 69%
91607 5.02% 6.98% $2,655 49%
90003 4.54% 5.65% $2,558 6%
90064 4.52% 6.66% $3,510 69%
90068 4.51% 6.75% $3,419 64%
90032 4.43% 4.13% $2,740 24%
90292 4.39% 4.39% $3,741 73%
90016 4.25% 3.26% $3,263 29%
90018 4.17% 3.69% $2,436 23%
90065 4.13% 3.92% $2,839 40%
90045 4.12% 4.97% $2,985 61%
90059 4.11% 4.62% $2,928 12%
91316 4.08% 4.79% $3,000 54%
90027 4.04% 4.38% $2,515 58%
90042 4.01% 2.90% $2,572 40%
90041 3.89% 3.55% $2,836 51%
91331 3.86% 4.81% $2,313 11%
90062 3.78% 3.31% $2,795 16%
90034 3.77% 4.41% $2,686 63%
91042 3.71% 4.03% $2,185 29%
91411 3.69% 4.00% $2,507 38%
91401 3.64% 3.80% $2,689 37%
90002 3.61% 3.93% $1,419 7%
91605 3.59% 3.65% $2,173 22%
91306 3.56% 4.16% $2,979 29%
91344 3.52% 4.06% $2,959 37%
91405 3.52% 3.75% $2,456 25%
91356 3.43% 4.17% $2,711 54%
90044 3.42% 3.04% $2,400 10%
91326 3.42% 4.16% $4,454 55%
91324 3.37% 3.71% $2,780 40%
91406 3.36% 3.35% $2,206 29%
91343 3.35% 3.44% $2,645 26%
91352 3.34% 3.46% $3,100 17%
90031 3.33% 1.87% $2,235 23%
91303 3.31% 3.41% $2,530 24%
91342 3.30% 3.62% $2,713 20%
91402 3.28% 3.63% $2,128 18%
90047 3.28% 2.76% $2,534 18%
90011 3.26% 3.16% $2,557 7%
91307 3.24% 3.51% $4,296 52%
91602 3.23% 3.54% $2,842 55%
91367 3.22% 3.24% $2,868 56%
91601 3.21% 2.48% $2,678 49%
91345 3.15% 3.15% $1,889 22%
90008 3.11% 2.33% $2,089 33%
90029 3.07% 1.47% $2,161 35%
90744 3.06% 3.25% $2,260 9%
90023 3.03% 2.11% $1,460 9%
91311 3.01% 3.42% $2,780 44%
90037 2.96% 2.21% $2,186 9%
91606 2.92% 2.06% $2,821 25%
91335 2.90% 2.62% $2,456 29%
90026 2.88% 1.64% $2,601 44%
90248 2.86% 2.63% $1,811 31%
90731 2.86% 3.21% $2,469 25%
90710 2.86% 3.16% $2,712 30%
90732 2.83% 3.19% $3,378 48%
90033 2.83% 1.51% $2,189 14%
91304 2.81% 2.85% $2,273 34%
91325 2.79% 2.80% $2,286 42%
90066 2.71% 2.09% $2,949 58%
90007 2.69% 1.15% $2,211 27%
90004 2.64% 1.29% $2,225 38%
90043 2.54% 0.84% $2,630 31%
90019 2.51% 0.91% $2,940 37%
91040 2.19% 1.09% $2,475 34%
91364 2.14% 1.53% $3,619 55%
90025 2.06% -1.97% $3,192 71%
90005 2.02% -2.05% $2,358 36%
91604 1.93% 1.46% $3,083 66%
90293 1.52% -2.23% $3,363 73%
90024 1.48% 1.48% $3,450 74%
90272 1.40% 1.40% $9,975 78%
90210 0.90% -3.64% $11,384 66%
90069 0.85% -3.92% $3,956 71%
90046 0.37% -2.80% $2,729 63%
90048 -0.08% -5.62% $3,459 69%
90291 -0.26% -7.84% $3,833 69%
90036 -1.13% -7.15% $3,141 69%
90049 -3.58% -10.32% $3,872 80%

Sorted by long-run blended appreciation. Green is at least 0.5pp above the national average, red at least 0.5pp below; smaller gaps are left neutral. ZIPs shown as links have their own detail page.

How these numbers are calculated

Appreciation comes from the FHFA House Price Index — a repeat-sales index that tracks the same homes over time, which is why it isn't distorted by a change in the mix of what sold in a given year. TerraVue reads it at the ZIP level, back to 1975 where coverage allows.

The forward estimate blends 60% of the longest available look-back (20 years where available) with 40% of the most recent 3 years. Long-run history is the more reliable signal, but a market that has genuinely changed pace should not be ignored — the 60/40 split is the compromise, and it's the same figure TerraVue's simulation uses.

The national comparison is the population-weighted average of these same blended ZIP-level figures, so it compares like with like.

The FHFA index measures rates of change, not price levels. These pages therefore describe how fast prices have moved, never what a home costs — that number depends on the specific property, and it's the one input you supply when you run an analysis.

Common questions

Is it better to buy or rent in Los Angeles, CA?

It depends on the price of the specific home and how long you'd stay. What the data settles is the market backdrop: over the past 20 years Los Angeles, CA home prices have risen about 3.60% a year, and TerraVue's forward estimate is 3.47% — below the national average of 4.02% — against a median rent near $2,689. TerraVue runs about 1,000 scenarios on a specific price to return the probability that buying beats renting, plus the breakeven year.

How fast are home prices rising in Los Angeles, CA?

Over the past 20 years, about 3.60% a year; over the past three, 3.05%. TerraVue's forward estimate blends the two at 3.47%. All of it comes from FHFA repeat-sales data across 93 ZIP codes, and individual ZIPs range from -3.58% to 10.65% on that same forward basis.

Which Los Angeles ZIP code has appreciated the most?

90015 at 10.65% a year, versus 90049 at -3.58% — a spread of about 14.2 percentage points a year within the same city.

What is the average rent in Los Angeles, CA?

Around $2,689 — the median across the city's ZIP codes, from the Zillow Observed Rent Index (all homes).

Other markets in California

San Diego, CASan Jose, CASan Francisco, CASacramento, CAFresno, CAOakland, CALong Beach, CABakersfield, CA