Homeownership rate in LA city hits 36%: USC

While homeownership continues to decline in Los Angeles — and the average age of homeowners climbs — the few young people that do own homes are increasingly doing so without a mortgage.

Examining homeowners under the age of 45, research from the USC Lusk Center for Real Estate found a 27 percent increase in people owning without a mortgage over the past decade. And homeowners without mortgages have lower average annual incomes than those with mortgages, about $163,000 versus $223,000.

“This pattern suggests that younger households may increasingly be occupying inherited homes purchased and paid off by previous generations,” USC’s report stated, noting that California has a higher share of property transfers as inheritances than nationwide. It seems living comfortably in California’s shrinking middle class boils down to the presence or absence of legacy wealth.

The update on the legacy effect in the L.A. residential market came from USC’s Neighborhood Data for Social Change, a project within the Lusk Center that released its second annual State of Los Angeles County Housing and Neighborhoods report this week, examining homeownership and new housing production, among other topics.

The report looked at which cities in L.A. County built the most units of housing per capita between 2018 and 2025. Rolling Hills Estates, Duarte and Hidden Hills led the charge followed by Los Angeles, Monrovia and West Hollywood. 

In comparing the time it takes to go from permits to certificates of occupancy for new builds for single-family homes versus two- to four-unit housing, USC found the former took 22 months, while the latter took 18 months. Both time frames increased compared to last year’s report. 

When looking at multifamily projects with five or more units, the timeframe jumped to 37 months. And for affordable multifamily compared to market-rate, affordable projects were completed one month faster on average.

The study found that both the City of Los Angeles and Los Angeles County have far lower homeownership rates than California and the U.S. The city’s rate is 36 percent, compared to about 46 percent for the county, 56 percent for the state and 65 percent in the U.S., the data revealed. Of Los Angeles County homeowners, close to half have lived in the same house for at least 20 years.

The gap between median home value and median household income has been growing for decades in L.A., according to the report. As of 2024, the median home value in Los Angeles County was nearly 10 times the median household income. In the City of Los Angeles, home values were close to 12 times local incomes. In California, the ratio is 8:1, and in the U.S. as a whole, it’s 4:1.

Looking at rebuilding from the Palisades and Eaton fires, the report identified a similar rapid pace of demolitions between the two areas, but “comparatively less new construction” in Pacific Palisades. 

In Altadena, there have been 2,021 residential parcels to receive permits, 1,475 homes in construction and 111 homes or ADUs completed, according to data from L.A. County. In Pacific Palisades, there have been 1,550 parcels to receive permits (though that includes commercial and residential), according to city data; 38 properties have received certificates of occupancy; and about 1,000 homes are in construction, the Palisadian-Post reported on Friday. 

Rebuilding tensions, milestones

Speaking of rebuilding, the cities of Malibu and Pasadena — which were also hit by the 2025 fires — bowed out of their fight against Senate Bill 9, which allows for lot splitting on single-family lots as well as building two housing units on each portion of the lot. 

Following the fires, each city had implemented restrictions on these projects arguing that higher density could impede evacuation routes and infrastructure in neighborhoods exposed to wildfire risk. Plus, there were concerns of “opportunistic developers” using SB 9 to change the characters of neighborhoods that had been burned. 

YIMBY Law — the legal arm of the pro-housing movement, yes-in-my-backyard — sued the cities for their SB 9 restrictions, arguing emergency authority could not override a state housing law. Malibu and Pasadena settled the case, agreeing to repeal their measures and resume accepting and processing applications that were previously submitted, paused or rejected.

Caruso Reopens, Buss Buys in Palisades  

Pacific Palisades hit a milestone on Saturday with the re-opening of Palisades Village, a retail center developed by Caruso in 2018. The outdoor shopping mall was partially damaged during the Palisades fire but fared better than some neighboring structures due to private firefighters dispatched by Rick Caruso. 

The reopening marks an important moment in the rebuilding process as the tension between who will be the first to return, businesses or residents, has left people on both ends hesitant to make moves.

“My dream is it gives people hope to reopen their businesses and rebuild their homes,” Caruso said in an interview with ABC7, which reported that the reopening cost $100 million. 

In another investment in the Palisades, Johnny Buss, part owner of the Los Angeles Lakers, bought a vacant, 15,000-square-foot lot at 860 Vía De La Paz for $7 million from Optimus Properties. Prior to the fire, the site, which is less than a half-mile from the Palisades Village, hosted a 35,000-square-foot office and retail building. It’s unclear what Buss has planned for the lot.

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