Single-family Home Development Slows in 2018

Despite the growing demand for housing supply in Los Angeles, single-family home development has slowed in 2018. According to LA Build Corp., the housing market has become saturated this year —largely because housing prices have pushed some buyers out of the market—and demand has tapered. In response, construction activity has slowed.

“It is true that the prices have been driven to an all-time high recently in the quest for single-family homes in the Hollywood area but it seems that the market has lately become saturated,” Ami Harari, president of LA Build Corp., tells GlobeSt.com. “There are factors that allow a property to have more value than others. It must have curb appeal; a good location without too many apartment buildings so that parking is not impossible and there is not a constant fluctuation of people moving in and out, near a good school district, etc. As the prices went up, the number of people who were able to purchase the homes started to taper off and so the market is not as in demand as what It was one year ago.”

Still, where land lots are available and feasible for new development—a rarity in Los Angeles—new home construction is happening. “New home development has been coming up wherever a lot has become available but the hottest areas are in the city,” adds Harari. “Young professionals have been snapping up the single-family homes because they are in the city but still have a quiet neighborhood. They can jumpy to most freeways easily to get to the beach, mountains or desert without driving very far and still be close to work.”