Los Angeles is facing the long and difficult journey of recovery after one of the most devastating wildfires in its history. For thousands of families, the loss extends beyond their homes—it’s the loss of cherished memories, stability, and a sense of normalcy. With nearly 12,000 homes destroyed, spanning from apartments to luxury estates, entire communities have been uprooted. As these families navigate the challenges of rebuilding their lives, the impact is being deeply felt across the local housing market. Our hearts go out to everyone who has been affected by these fires.
In a recent housing debrief, local housing economist Steven Thomas provided insights that align with what our team is witnessing firsthand. The leasing market has become increasingly competitive, with the most dramatic year-over-year changes occurring in the $10,000–$20,000 and $20,000+ rental segments. Meanwhile, in the resale markets of Playa del Rey, Playa Vista, and Westchester, we are seeing low inventory and sustained demand, particularly in the $2,000,000+ luxury sector.
Undoubtedly, the LA wildfires have reshaped the housing landscape, with their impact deeply felt in both the resale and rental markets.
Market Rebounding from Seasonal Slowdown (LA County)
The resale market is emerging from the typical holiday slowdown, with activity beginning to pick up as we move further into the year.
Currently, Los Angeles County’s housing inventory sits at 10,373 homes—a 38% increase compared to last year. But despite more homes being available, buyer demand is lagging, down 7% year-over-year. With 232 fewer pending sales, sellers are finding it takes longer to close deals. According to Steven Thomas, expected market time—the number of days from when a home is listed to when it goes into escrow—is a key indicator of market speed.
Thomas calculates Expected Market Time (EMT) by dividing the number of active listings by the number of pending sales in the last 30 days, then multiplying by 30. This metric estimates how long it would take for all current listings to sell if no new homes were added to the market. Unlike median days on market, which only tracks homes that have successfully entered escrow, EMT provides a broader picture of market health by incorporating unsold inventory.
At 88 days, compared to 72 days last year, this suggests a slower-paced market where buyers are taking more time to make purchasing decisions, largely due to the increased inventory, higher interest rates and shifting economic factors.
The following charts compare the Inventory from the beginning of last year (Jan 1st – Feb 7th) to the same time period this year and compare demand (pending sales) from the last 30 days to same time period last year.
Luxury Market Gains Momentum (Homes Priced Over $2,000,000)
The luxury housing market, however, is telling a different story—one of resilience and increasing demand. Much of the wildfire devastation occurred in high-end neighborhoods like the Pacific Palisades, and many displaced homeowners in this segment are financially equipped to act quickly.
Luxury home inventory is up 24% year-over-year, with 2,068 high-end listings currently available. The good news? Luxury demand has surged by 24%, and the expected market time has improved, sitting at 123 days—a significant boost compared to just a month ago.
This surge in luxury demand reflects a motivated group of buyers, many of whom have the means to re-enter the market without delay.
For homes priced under $2,000,000, we anticipate a steady increase in demand as we move into March, driven by the spring real estate season and a gradual influx of buyers displaced by the fires.
The Light Switch Effect: Residential Leasing Surges
Unlike the slow recovery in resale, the rental market lit up instantly—like flipping a light switch. With thousands of families in need of temporary housing, demand for rentals skyrocketed.
In January 2025, Los Angeles County recorded 3,263 leases—a 53% increase year-over-year and the highest ever recorded. The surge wasn’t limited to one price range:
- Leases in the $10,000–$20,000 range soared by 113%.
- Luxury leases above $20,000 jumped by 252%, with 190 luxury leases signed this January compared to 54 last year.
For many families, securing temporary housing is their first step toward stability. However, this demand is putting pressure on existing inventory, especially in the mid- to high-end ranges. Authorities are keeping a close watch to prevent price gouging and ensure fair access for displaced families.
Neighborhood Focus: Playa Vista, Westchester, and Playa del Rey
Playa Vista Housing Market: A Hotspot for Luxury Buyers
Known for its modern tech-friendly vibe, Playa Vista continues to attract affluent buyers, particularly those seeking luxury homes. As inventory rises, demand has kept pace, especially in the $2 million and above price range.
Playa Vista Market Stats (January 2025):
- Active Listings: Higher than last year, with a good mix of condos, townhomes, and luxury single-family homes.
- Pending Sales: Increasing month-over-month, especially in the luxury segment.
- Market Time: Relatively fast in higher price ranges, reflecting steady buyer interest.
Playa Vista’s close proximity to major tech hubs makes it a magnet for professionals and executives. Buyers are showing particular interest in luxury single-family homes and high-end condos that offer modern amenities and proximity to parks, restaurants, and entertainment options.
Westchester Housing Market: A Balanced Market in the Making
Westchester’s family-friendly atmosphere and easy access to LAX and Silicon Beach make it a highly desirable neighborhood. The area is seeing a balanced market, with both rising inventory and steady demand.
Westchester Market Stats (January 2025):
- Active Listings: Gradually increasing but still manageable compared to other parts of LA County.
- Market Time: 88 days on average, faster than the countywide average of 108 days.
- Buyer Interest: Concentrated in single-family homes priced between $1 million and $2 million.
Westchester offers a wide range of properties, from charming mid-century homes to newly renovated, modern residences. The market’s balance means sellers can attract competitive offers without experiencing the prolonged market times seen in other areas.
Like Playa Vista and the other nearby luxury markets, Westchester has seen a significant pick up in demand for larger renovated/newly built properties.
Playa del Rey Housing Market: Coastal Living Driving Strong Demand
Situated along the coast, Playa del Rey offers a unique combination of beachside charm and city convenience. The area’s housing market is defined by its limited inventory and steady demand, making it more competitive compared to other regions of Los Angeles County.
Playa del Rey Market Stats (January 2025):
- Active Listings: Limited inventory has kept competition high.
- Median Market Time: 95 days, faster than the county average.
- Buyer Interest: Strong in mid-range homes priced between $1 million and $2 million.
With its tranquil environment and ocean views, Playa del Rey attracts buyers looking for a laid-back lifestyle. Properties near the beach tend to move quickly, particularly those offering modern upgrades and coastal amenities.
Final Thoughts: What’s Next for Playa Vista, Westchester, and Playa del Rey?
Looking ahead, the spring and summer seasons are expected to bring a wave of new activity. Rising inventory across Silicon Beach could offer more options for buyers, but sellers should be prepared for longer market times, especially in lower price brackets.
The road to recovery in Los Angeles County will be gradual, but the resilience of its housing market offers hope. If you’re navigating this dynamic market—whether buying, selling, or renting—Team Tami is here to guide you every step of the way.