Building Costs Per Square Foot in the City of Los Angeles (CA), USA

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Los Angeles 1349 Burnside Avenue CA90019 - 3 Bed and 4 Baths with 2 x Parking Spaces on Gross Floor Area 1,272 sqft - Built in 2022 - Price $899,000 (1)

Newly Built House in Los Angeles 1349 Burnside Avenue CA90019 – 3 Bed and 4 Baths with 2 x Parking Spaces on Gross Floor Area 1,272 sqft – Built in 2022 – Price $899,000 (1)

Residential Construction Market Analysis in the City of Los Angeles, USA

Building costs are 8% above the national average in the City of Los Angeles in California, equivalent to the city of Alhambra, San Diego, Van Nuys, Whittier, Denver, Gary, Emporia, Lafayette, Annapolis, Laurel, Springfield, St Louis, Staten Island, Southeastern, Washington, Greenville, Bryan, Lufkin, San Antonio, Madison and Rawlins. The iconic Hollywood sign welcomes you to a city full of stars. In Los Angeles dreams really do come true, you just have to be prepared to work for them. And what dream is bigger than having your own home? Well, fortunately, that is also possible here.

Los Angeles has over 80 municipalities and more than 8 million inhabitants. Its most populous county is Los Angeles County which includes the city of the same name, Los Angeles. This city is the second-largest in the United States, with over 3 million inhabitants, and it is only topped by New York.

However, Los Angeles County, is one of the cities that suffered the largest population loss in the US the past few years. It is believed that the COVID-19 pandemic is the main cause, but of course other economic and political reasons affected the population number too. It is estimated that LA has lost 180,000 citizens in the past 3 years.

This is not a bad thing for everyone, since it means that although there is a drop in demand, the supply remains the same. This is an ideal situation both for investors and people that are looking to buy a house in the city.

That is why we have prepared this article with all the information you need to know about the residential construction market in Los Angeles, how it is currently, what changes are expected, and other information that will be of great help to you.

Los Angeles Construction Outlook

The city of Los Angeles has a great diversity in the types of construction. It is a city that is not afraid to mix the modern with the old, and you can find houses from the 30s preserved as if they were built yesterday, or skyscrapers similar to those of NY.

In luxurious areas such as Bel Air and Beverly Hills, wealth and glamor reign, in fact, they are the areas where celebrities or the richest people in the world live. Here the constructions are mansions, with more than 10 rooms, swimming pools, and all the luxuries that you can imagine.

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Eccentricity reigns supreme on Venice Beach, with houses almost as expensive as those in Beverly Hills, but with a more coastal style. The Westwood area is full of tourists, so the houses or apartments there usually have Airbnb as neighbors, which is a great option if you don’t get along with your loved ones, since here they change almost always.

Los Angeles Housing Market Analysis and Forecast

The real estate market in Los Angeles should always be observed in relation to the public policies taken by the government in that area.

In annual comparison, supply fell 18%, driven by the drop in housing with a social and territorial integration subsidy (-19%) and those without a subsidy (-16%). In terms of sales, a 12% global increase was recorded, driven by social units (+35%), while private units fell by 20%.

Another important indicator of the real estate market in Los Angeles is the forecast of a price increase of around 12% due to the elimination of construction benefits. In particular, the end of the Special Credit for Construction Companies, which indirectly benefits buyers in the final price, will increase housing costs and lead to less supply.

This trend in demand is often related to the pandemic, but it is important to note that LA is losing inhabitants due to other reasons too. In addition to the cost of living in Los Angeles, people is leaving this city due to the rise in the crime rates, the economic instability of the work places here, etc. This means that there are no longer so many people looking to live or buy in Los Angeles, directly affecting the real estate market.

Los Angeles Average House Price (Median Home Price)

The median price of a single-family home in Los Angeles County is $770,000. This means that the median home price increased 84% since 2013, making it one of the largest median value increases in the entire country, second only to Hawaii and New York.

While this is an average value, keep in mind that it is an average of different family properties throughout Los Angeles, so you may find some properties cheaper and others more expensive.

The Venice Beach area is one of the most expensive, with houses starting at $2M minimum. Also, other parts where the big Hollywood stars or celebrities of all kinds live can cost more than $40M. This type of property makes the median value higher.

Anyway, in places like Sylmar, and Tarzana, among others on the outskirts of the tourist area or for celebrities in Los Angeles you can find houses from $300,000 to $500,000 with all the necessary amenities.

Proposed Residential Building Projects in Los Angeles

Los Angeles is synonymous with luxury, so it is not surprising that the majority of real estate or residential construction projects are related to it.

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Mansion projects are being built every day of the year, as there is always a new start moving into the neighborhood. These are huge mansions, with more than 8 rooms, swimming pools, and everything you can imagine.

Even in the tourist area of Los Angeles, there are high-rise projects under construction, with apartments ranging from 4-bedroom penthouses to studio apartments. In Los Angeles, there is always something for everyone.

If you move away from the famous tourist areas, you will see that there are a large number of condominiums or buildings with a maximum of 4 floors under construction. These are prepared to receive people and large families or just a couple.

Los Angeles 1126 E 64th Street CA90001 - 3 Bed and 1 Bath on Gross Floor Area 3,023 sqft - Built in 2008 and Remodelled in 2022 - Price $535,000 (2)

Remodeled House in Los Angeles 1126 E 64th Street CA90001 – 3 Bed and 1 Bath on Gross Floor Area 3,023 sqft – Built in 2008 and Remodelled in 2022 – Price $535,000 (2)

Building Costs Per Square Foot for Single Family Homes in the City of Los Angeles, USA

Building costs are 8% above the national average in the City of Los Angeles in California, equivalent to the city of Alhambra, San Diego, Van Nuys, Whittier, Denver, Gary, Emporia, Lafayette, Annapolis, Laurel, Springfield, St Louis, Staten Island, Southeastern, Washington, Greenville, Bryan, Lufkin, San Antonio, Madison and Rawlins.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Los Angeles City ranges from $451.81 per sqft to $692.60 per sqft, with the average being $533.20 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Los Angeles City ranges from $274.59 per sqft to $420.90 per sqft, with the average being $324.04 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Los Angeles City ranges from $177.51 per sqft to $269.61 per sqft, with the average being $207.82 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

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Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Los Angeles City ranges from $129.55 per sqft to $198.66 per sqft, with the average being $152.89 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Los Angeles City ranges from $105.15 per sqft to $161.04 per sqft, with the average being $123.99 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Los Angeles City ranges from $82.94 per sqft to $127.12 per sqft, with the average being $97.84 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.


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