A combination of excellent year-round weather and a vibrant economy have helped to make housing prices in Los Angeles among the highest in the nation. The City of Los Angeles is generally considered to include the 88 cities and 140 unincorporated communities that are part of Los Angeles County and it is not surprising that housing prices vary considerably from city to city within the vast, sprawling area that comprises Los Angeles County.

As of October of 2004, the median price of a home within the actual city limits of Los Angeles was $499,000. It is expected that while interest rates remain at a low rate, housing prices in Los Angeles will continue to rise, to the point where even the average condominium will be selling for approximately $200,000.

Prices for homes in some of the least fashionable areas of Los Angeles, such as Compton, average in the neighborhood of $188,000, while homes in such up-scale neighborhoods as Beverly Hills are going for an average of more than $1,460,000. Homes in the fashionable semi-desert community of Calabasas on the northern edge of Los Angeles county are selling for over $1,400,000, and the average price for a home in beach communities such as Santa Monica and Manhattan Beach are priced at well-over $1,000,000

The most expensive real estate in Los Angeles County is in Marina del Rey, where the average price of a home is fast approaching $2,000,000.

Because of the increased property values, rental units and rental properties in Los Angles and its surrounding communities are also very high in comparison with the standards set within other parts of the country. For some inexplicable reason, inexpensive loft apartments never previously caught on in big way in Los Angeles. Yet, today, this is starting to change as many new homebuyers in LA are seeking out new, trendy luxury loft apartments with loads of open space, wooden constructions and infinite décor possibilities.