Southern California Home Price Surge Outpaces Rent Growth

Southern California led U.S. home price growth in 2023, according to the Case-Shiller Index. An 8.3% increase in the Los Angeles - Orange County area was only topped in the 20-City composite index by an 8.8% rise in San Diego, while the U.S. national index increased by 5.5%. Home prices in Los Angeles are now 4.3 times higher than in 2000, vastly outpacing a less than twofold increase in apartment rents over the same period. Coupled with higher interest rates, rapid home price escalation in Southern California has opened a wide gap in the financial burdens between owning and renting.