Looking at the numbers, by the end of 2025, the median home price in Los Angeles is expected to exceed $1.14 million.

Even when looking at the broader area, prices are around $800,000. This is the average. If the average is this high, neighborhoods that seem "decent" are already over $1.5 million.

Compared to the national average, that's almost double. So, the concept of "middle-class homeownership" in LA is becoming a bit blurry.

When looking at neighborhoods, it gets even more absurd. Places like Beverly Hills and Bel Air feel like a different country. We're talking about prices of $3 million to $4 million.

On the Westside, the baseline is $2 million. In contrast, East LA or South LA can have homes priced between $500,000 and $700,000.

Even though it's the same county, there's such a price disparity. Koreatown, where many Koreans buy, falls somewhere in between.

For condos, prices range from $500,000 to $1 million. Yet, it's a bit ridiculous to have to say this is "reasonable."

The current market is strange because interest rates and supply are not aligned. Typically, when interest rates rise, home prices should drop.

As borrowing costs increase, demand should decrease. However, LA is facing a severe supply shortage. There simply aren't enough homes.

New construction is slow due to regulations, land costs, and construction expenses. So, even though demand decreases, prices do not drop.

What we're seeing is that homeowners are holding on, while those without homes are finding it increasingly difficult to buy. The discussion about wealth disparity is not unfounded.

On top of that, wildfires occasionally disrupt the market. When fires occurred in Pacific Palisades and Altadena in 2025, the market was briefly shaken.

Of course, affected areas suffer, but ironically, surrounding areas see price increases. This is because supply diminishes further. And now, when looking for a home, price is not the only factor to consider.

Whether insurance is available has become more important. Recently, there have been increasing cases in California where insurance is not offered. It's frustrating to have a home but not be able to get insurance.

So, what's the conclusion? It's hard to say definitively. If you're planning to stay for more than five years, have some down payment ready, and have a stable job, buying might be the right choice.

But if you have mobility concerns and are worried about tying up cash, renting is much more convenient. It can be tough to manage mortgage, property tax, and insurance if you rush into buying.

Ultimately, the LA real estate market is not one that is waiting for prices to drop. They won't drop.

Instead, you need to first consider, "Can I endure this?" Whether you like it or not, this seems to be the reality.