Los Angeles County Market Spotlight: $878K Median Home Price in 2026

LA County By the Numbers

Los Angeles County is the most populous county in the United States, and its housing market reflects that scale:

| Metric | Value | Source | |--------|-------|--------| | Median Home Price | $878,000 | Census ACS 2023 | | Population | 9,757,179 | Census ACS 2023 | | Median Household Income | $80,956 | Census ACS 2023 | | 30-Year Fixed Rate | 6.09% | FRED | | Price-to-Income Ratio | 10.8x | Calculated |

What This Means for Buyers

At a price-to-income ratio of 10.8x, LA County is one of the most affordability-challenged markets in the nation. For context, the national average is roughly 4-5x.

Monthly Payment Reality

For the median-priced home ($878,000) with 20% down ($702,400 loan):

• 30-year at 6.09%: ~$4,246/month (P&I)
• Property tax + insurance: ~$1,100/month
• Total PITI: ~$5,346/month
• Required income (43% DTI): ~$12,433/month ($149,200/year)

Financing Strategies for LA

1. Jumbo loans: Required for most purchases above $766,550
2. High-balance conforming: $766,551-$1,149,825 offers better rates than full jumbo
3. FHA with high-cost limits: Up to $1,149,825 with 3.5% down
4. Down payment assistance: CalHFA programs can cover up to 3.5%
5. Rate buydowns: 2-1 buydown saves ~$650/month in year one on a jumbo loan

Neighborhood Trends

• San Fernando Valley: Relative value at $750K-900K medians
• South Bay: Premium pricing but strong appreciation history
• Antelope Valley: Best affordability in LA County (under $500K)
• Downtown/DTLA: Condo market showing softness; negotiation opportunities

"LA is not a market you can approach with a one-size-fits-all strategy. You need a lender who understands high-balance, jumbo, and creative financing." — Sam Tehranchi, Custom Mortgage Inc.

Market data from Census ACS 2023 and FRED. Custom Mortgage Inc. NMLS #268582.