July 19, 2025 #1 Local News, Information and Event Source for the Century City/Westwood areas.

Millennials get priced out amid high home sales prices in Southern California

Bess Hochman is a top Westside real estate broker of more than 20  years.
Bess Hochman is a top Westside real estate broker of more than 20 years.

Southern California continues to show annual sales price gains. The September median home sales price in the Southland rose about 8 percent year over year.

With the dramatic run up in prices over the last few years and predicted weak economic growth, the outlook for Millennials as homebuyers does not look rosy. An analyst for DQ Services, a respected national data reporting firm, explained “prices are high enough to be a hurdle for a lot of potential buyers, even though mortgage rates have fallen in recent months.”

This Millennial generation, larger than those of the baby boomer generation, are the largest cohort of potential first-time buyers. Generally considered to range in age from their early 20’s to 34, they are typically looking to rent rather than buy.

High unemployment, stagnant wages, large student loan debt, as well as stringent mortgage loan requirements for those who are ready to buy are all reasons why many Millennials are not undertaking home ownership.

If these first-time buyers continue to put off entering the real estate market, then this will affect sellers up the chain. The limited number of move-up buyers will diminish demand, which in turn will drive sales prices down and rents up.

Some analysts worry that without Millennials’ leadership, the decrease in first-time home buyers will cause a long lasting negative ripple throughout the economy.

In addition to stalling the economic recovery, a large population of renters rather than owners will further widen the wealth gap in the United States. The recent USC Casden Multifamily Forecast predicts monthly rents will continue to rise for at least two more years.

Strong investor activity and rising home prices helped fuel the market recovery in 2012. Since then, however, strong investor activity has fallen off as foreclosure properties disappeared and prices jumped.

The most recent report from DQ Services marked the 4th consecutive month with single digit year-over-year gains as opposed to prior double-digit gains for the preceding 22 months. The drop in the rate of appreciation signals buyers have started to put the brakes on prices.

On the luxury L.A. Westside, Millennials are often opting for expensive rentals and dining at trendy gourmet eateries. Some say this is distancing them even further from being able to save enough for a down payment to purchase their first home. Over the last half century, home ownership by this group has decreased from a third to about a quarter.

If price is no object, there is the ultra luxury home priced over $15 million, where prices are skyrocketing and selling time is shorter. Clearly, there are two real estate markets here, the mega-wealthy and the rest of the market.

Predictions are for more modest home value growth on a national basis. The Zillow Home Value Forecast predicts pricing growth of 3.1 percent from September this year through August 2015, down from 6.6 percent over the past year.

For a free consultation, contact Bess Hochman, a top Westside Real Estate Broker for more than 20 years. Bess is also distinguished by holding a law degree. This article expresses the opinion of the author. You are advised to consult attorneys and others experts specializing in the issues referenced in this article. Contact Bess by phone at 310.291.4111 or email: Bess.CenturyCityNews@yahoo.com.

“Bess is a master negotiator!” says Michael Donaldson, attorney and author of “Negotiating For Dummies”

Related Posts

Man Arrested in Brentwood for Impersonating Firefighter During Palisades Fire

July 18, 2025

July 18, 2025

The suspect faces at least 28 criminal counts—including 23 felonies—spanning incidents from 2023 to May 2025 Federal and local law...

Study Highlights Economic Impact of Cap-and-Trade Extension in Los Angeles

July 18, 2025

July 18, 2025

Governor Gavin Newsom and legislative leaders are pushing to reauthorize the program this year, citing its role in generating 287,000...

Nearly $1B Secured for Refinancing of Westfield Century City Mall

July 17, 2025

July 17, 2025

The proceeds will replace a $925 million commercial mortgage-backed securities loan, originally issued by Morgan Stanley in 2023 and due...

West Coast Premiere of ‘The Opposite of Love’ Opens at Hudson Backstage Theatre

July 17, 2025

July 17, 2025

Produced by Neil Gooding Productions, behind shows like Back to the Future: The Musical, the play runs Thursdays through Saturdays...

Tesla Seen Nearly Crashing into West LA Home After Collision

July 17, 2025

July 17, 2025

Footage depicted a blue Prius on the road with significant front-end damage A crash involving injuries was reported around 12:30...

DUI Checkpoints to be Conducted Across LA This Weekend

July 16, 2025

July 16, 2025

The LAPD selects checkpoint sites based on data indicating high incidents of impaired driving-related crashes and arrests The Los Angeles...

Mayor Bass Hails National Guard Withdrawal as Victory for Unity

July 16, 2025

July 16, 2025

The Pentagon’s decision to reduce the troop presence follows weeks of legal challenges and public demonstrations Mayor Karen Bass celebrated...

(Video) Did You Know Emma Chamberlain’s Coffee Shop is in Century City?

July 16, 2025

July 16, 2025

The outpost is a first for the popular influencer Did You Know Emma Chamberlain’s Coffee Shop is in Century City?...

Dodgers to Host Back to School Bash for Fire-Affected Families

July 16, 2025

July 16, 2025

The free event will offer free groceries, school supplies, outfits, haircuts, medical screenings, and carnival rides The Los Angeles Dodgers...

Hundreds of Red-Legged Frog Tadpoles Released in Santa Monica Mountains

July 16, 2025

July 16, 2025

Once widespread in California, red-legged frogs vanished from the Santa Monica Mountains by the 1970s Nearly 600 California red-legged frog...

LA Sees Second Straight Year of Homelessness Decline, Leaders Celebrate Progress

July 16, 2025

July 16, 2025

The survey, designed by the University of Southern California, reported a 17.5% drop—the largest two-year decrease on record The Los...

Westwood Village Board to Discuss Public Art Initiative

July 15, 2025

July 15, 2025

The initiative aims to enhance community pride, boost local business revenue, and address urban blight through public art corridors and...

Beverly Hills Plans Major Apartment Development Near Civic Center

July 15, 2025

July 15, 2025

The site, currently holding 13 residential units, is slated for demolition to make way for the new development A proposal...

Federal Judge Sides with Santa Monica, Other Local Governments Against Immigration Raids

July 15, 2025

July 15, 2025

Santa Monica Mayor Lana Negrete praised the ruling, saying it reaffirmed the city’s commitment to protecting residents from unjust detention...

California Hits Two-Thirds Clean Energy Milestone

July 15, 2025

July 15, 2025

This year, clean energy has powered the state for an average of seven hours daily, with over 90% of days...