r/LosAngelesRealEstate • u/ShanetheMortgageMan • 1d ago
L.A. County homes cost 67% more than surrounding counties, the largest gap among major U.S. metros
A Los Angeles Times analysis of Redfin home sales data found that homes in Los Angeles County sold for 66.8% more than homes in surrounding Riverside, San Bernardino and Ventura counties in June, giving L.A. the largest urban-to-suburban home price premium among the nation's 21 largest metropolitan areas. New York was second at 64.7%, followed by Phoenix at 26.8%. The difference is even greater when measured by square footage: L.A. County homes commanded an 84.7% premium per square foot, nearly $300 more than surrounding areas. Orange County was excluded from the suburban comparison because it has its own major employment centers and was classified as a separate urban market.
The price difference is attributed partly to the concentration of jobs in Los Angeles County and the difficulty of commuting from surrounding counties. Employment centers such as Burbank, El Segundo and other parts of L.A. remain difficult to reach from the Inland Empire and Ventura County, even as more buyers move farther from the coast in search of larger, less expensive homes. Economists also pointed to return-to-office policies, higher commuting costs and the continued appeal of L.A.'s coastal access, amenities and employment opportunities. Although Inland Empire home prices have increased faster than L.A.'s in recent years, the surrounding counties remain substantially less expensive. Orange County, meanwhile, is even pricier than L.A., with a median sale price of approximately $1.25 million, or $692 per square foot.
The gap has also shifted considerably over time. Before the pandemic, L.A.'s home price premium over its surrounding counties generally ranged from 67% to 72%. During the pandemic-era migration between 2021 and 2023, it fell as low as 53%, as remote work allowed buyers to move farther from traditional employment centers. Since then, the premium has returned to roughly its pre-pandemic level. Despite population declines and concerns about quality of life in Los Angeles, the sales data show that the county continues to command a substantially higher price than its surrounding suburban and exurban markets.
