Los Angeles Real Estate Report

Movement Is Happening — Even in a Challenging Market

After 33 years selling homes across Los Angeles, I can tell you that even in the tightest markets, people still move. Life doesn't wait for perfect interest rates or ideal inventory levels — families grow, careers shift, and priorities change. What's fascinating right now is that a new report from Gravy Analytics reveals exactly where people are searching for homes and what's driving those decisions. Whether you're thinking about selling your Hancock Park craftsman or buying your first home in the San Fernando Valley, understanding these national trends can sharpen your own strategy. If you're just beginning to explore, our [buyers resources](/buyers-resources) page is a great place to start.

Where Are People Moving in 2025 — And What It Means for Los Angeles Buyers and Sellers

People Are Moving to Cities with Lower Housing Costs

Affordability remains the dominant force behind relocation decisions in 2025. Buyers are gravitating toward smaller cities and suburbs where housing costs are more manageable. As Hannah Jones, Economics Data Analyst at Realtor.com, puts it: 'Affordability is still very much front and center… a lot of what's available is outside of the price range of many buyers… so they look elsewhere for a little more bang for the buck.'

Here in Los Angeles, I see this play out every week. Buyers who've been priced out of Westside neighborhoods are discovering tremendous value in communities like Highland Park, Eagle Rock, or even Pasadena — areas with real character, walkable streets, and homes with genuine architectural pedigree. The takeaway? If your budget feels stretched, broadening your search radius by even a few miles can open doors you didn't know existed.

People Want to Live Where They Vacation

This is a trend I find particularly compelling. According to Gravy Analytics, buyers are increasingly relocating to areas that were once considered vacation destinations — mountain towns, lakeside communities, and coastal suburbs. As the report notes: 'Whether it's the opportunity to enjoy more weekend hikes in the mountains or to wake up to a lakeside sunrise, people are moving to areas that were once thought of as vacation spots.'

In the LA context, this is nothing new — people have always dreamed of living near the beach or in the foothills. But what's changed is that existing homeowners now have significant equity to leverage. If you've owned a home in Los Angeles for even five or six years, there's a strong chance your equity can fuel a move to a lifestyle property — whether that's a Malibu cottage, a cabin-style home in the San Gabriel Mountains, or a mid-century retreat in Palm Springs. If you're considering selling your current home to make that leap, our [sellers resources](/sellers-resources) page walks you through the process.

Remote Workers Are Rewriting the Rules of Location

Remote and hybrid work continues to reshape where people choose to live. A recent McKinsey Global Institute report found that 55% of people who moved during the pandemic relocated farther from the office — and that flexibility hasn't gone away. As McKinsey notes: 'Many of these moves happened because employees untethered from their daily commutes began to care less about how far they lived from the office.'

For Los Angeles buyers, this is significant. If you work remotely, you're no longer tethered to a commute-friendly location near Century City or Downtown. You can prioritize proximity to family, access to nature, school districts, or simply a neighborhood with the kind of character and charm that drew you to LA in the first place. I've helped several remote-working clients make exactly this kind of move over the past few years, and the results have been life-changing.

Key Takeaways for LA Buyers and Sellers

• →Affordability is driving buyers to smaller cities and overlooked neighborhoods — expand your search radius to find hidden value.
• →Existing homeowners can leverage their equity to relocate to lifestyle-driven destinations they once only visited on vacation.
• →Remote work flexibility means location decisions can now prioritize lifestyle, family, and community over commute times.
• →Los Angeles neighborhoods like Highland Park, Eagle Rock, and Pasadena offer strong value for buyers priced out of the Westside.
• →Whether buying or selling, understanding these migration trends gives you a strategic advantage in today's market.

Frequently Asked Questions

Whether you're thinking about selling your Los Angeles home to relocate or searching for the right neighborhood to call home, I'd love to help you navigate the process. With 33 years of LA real estate experience, I can help you make the smartest move for your next chapter.