In many ways, Downtown Los Angeles fits the description of a perfect neighborhood: it offers a stellar selection of amenities and attractions, it has an efficient and reliable public transportation system, its school district is one of the best in the country, and it has a thriving economy and job market—not to mention an incredibly diverse population.
Continue reading as we lay out all you need to know about investing in dynamic Downtown Los Angeles and its equally vibrant real estate market.
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Downtown Los Angeles: An Overview
A constantly evolving area, Downtown Los Angeles—or DTLA, as its longtime residents affectionately call it—has a long and colorful history that stretches back to the Spanish Missions in California.
Today, Los Angeles’ city center is best known for being a hip and modern district that caters to a predominantly young crowd. This is especially apparent in its amenities and attractions, such as cafes, restaurants, microbreweries, boutiques, entertainment spaces, and independent specialty retailers.
Downtown Los Angeles is composed of different individual neighborhoods, each with its own distinct personality. Some of the more prominent include:
- The Financial District – Considered the heart of Downtown Los Angeles, the Financial District is noted for its wealth of attractions and amenities, including top restaurants, shopping centers, luxury hotels, and the regional Metro rail system. Homes for sale in the Financial District typically start at $400,000 for a one-bedroom unit, while two-bedroom units reach prices of around $900,000. Luxury properties, on the other hand, can easily fetch up to $7 million.
- Bunker Hill – One of the most sought-after locations in Downtown Los Angeles, Bunker Hill is famous for its commanding views of the city, as well as its unique mix of commercial towers, museums, performance venues, and restored lofts. Homes for sale in Bunker Hill are a diverse lot, with Victorian-style houses sitting side by side with modern condominiums.
- The Historic Core – Los Angeles’ former financial district, the Historic Core is best known for the beautiful 1920s buildings that dot its landscape, most of which have been subjected to renovations for adaptive reuse. Homes for sale in this part of Los Angeles start at $400,000, although luxury properties in the area can easily fetch a minimum of $1 million.
- The Arts District – One of the oldest neighborhoods in the city, the Arts District is home to old, 70s-era warehouses and factories, most of which have since been converted to art galleries, museums, restaurants, music venues, artists’ lofts, and commercial establishments. The Arts District also regularly hosts cultural events in the city, such as the Art Walk.
- Chinatown – A popular tourist destination, Los Angeles’ Chinatown started out as a settlement populated by Chinese workers hired by the Central Pacific Railroad Co. to work on the western portion of the transcontinental railroad. Today, Chinatown is a bustling cultural hotspot and is a mecca for good food, amazing street art, culture, and all-night parties.
- Little Tokyo – One of only three officially recognized Japantowns in the entire country, Little Tokyo has functioned as an enclave for the city’s significant Japanese population ever since its creation in the 1880s. Also known as J-Town, Little Tokyo is home to amazing real estate properties, all of which are just a short walk away from the neighborhood’s selection of sushi restaurants, museums, and lifestyle stores.
- South Park – Once an industrial area, Downtown Los Angeles’ South Park has since traded its old warehouses and abandoned parking lots for establishments such as the Crypto.com Arena and the Los Angeles Convention Center, making it the go-to location for concerts and other live events. In addition, South Park is also home to a good number of high-rise residential developments, all of which are highly favored by those who want to live right where the action is.
- The Fashion District – The heart of Los Angeles’ fashion industry, this neighborhood—also known as the Garment District— is home to a colorful mishmash of over 4,000 independent retailers, high-end boutiques, and designers’ ateliers, making it a must-visit site for those with a passion for fashion. Aside from shops, the Fashion District is also home to an amazing selection of residential units, some of which are housed in the district’s newly-renovated Art Deco buildings.
Downtown Los Angeles’ unique neighborhoods offer an impressive variety of real estate properties, with luxury condominiums and apartments being the most popular choice in the entire area.
What is the Downtown Los Angeles real estate market like?
At present, the Downtown Los Angeles real estate market is relatively steady, with properties selling for a median price of $690,000—a reflection of the 9.9% year-over-year increase in real estate prices. Some of the more luxurious offerings in the area, however, can fetch prices in the millions.
As of July 2022, homes in Downtown Los Angeles typically sell after 63 days on the market—a sharp drop compared to the previous month, which saw properties stay on the market for up to 75 days.
The steady increase in Downtown Los Angeles’ home prices can be traced back to the revitalization projects implemented throughout the neighborhood. These projects led to an influx of investors and businesses, which then led to a boom in the neighborhood’s job market, and subsequently, an increase in demand for housing.
Given the relatively steep prices of properties in the Downtown Los Angeles real estate market, many of the neighborhood’s residents simply opt to lease their homes, paying anywhere from $700 to $25,000 per month in rent. This presents a good opportunity for real estate investors who may want to take advantage of the steady demand for properties in the neighborhood.
Why you’ll want to invest in Downtown Los Angeles real estate
Buying real estate and living in Downtown Los Angeles presents several advantages to buyers.
- Downtown Los Angeles properties are sound investments. Whether you are relocating, looking for a second home, or in the market for a property to rent out, nothing really beats real estate in Downtown Los Angeles. This is because properties in the area hold their value well and are known to significantly increase in value over time. And while demand for real estate here is consistent, the DTLA market as a whole is not as competitive as those in other areas, giving investors more opportunities to score a good deal.
- Downtown Los Angeles has a booming economy. Downtown is seeing a resurgence in its economy, with the tourism, tech, and entertainment industries taking the lead in growth and job creation. Aside from that, Los Angeles is also expected to fully recover from the economic strain brought about by the pandemic in the first quarter of 2023—a welcome development for those looking to establish businesses or look for jobs in the area.
- Downtown Los Angeles provides access to top-performing schools. Residents of DTLA have access to a wide selection of top-performing public, charter, and private schools. This makes it a good neighborhood for families looking to provide top-quality education to their children. College-aged learners also have a wide range of options when it comes to higher education, the closest of which is UCLA in Westwood.
- Downtown Los Angeles boasts an incredibly diverse selection of properties. While it can be said that high-rise luxury condominiums dominate the landscape, they’re not the only option available to buyers in the area. Some of the other options include newly renovated lofts in the Arts and Historic Core districts, as well as single-family homes in Bunker Hill and Chinatown, most of which are built in the Spanish, Victorian, and mid-century modern styles.
- Downtown Los Angeles is walkable and has an efficient public transportation system. Contrary to popular notions, the Downtown area is quite walkable and provides easy access to the city’s public transit system. This makes cars relatively unnecessary for most people, as they can just walk, bike, or take the subway trains, light rail, and buses to their offices or schools. In addition, the Downtown area also has easy access to the Los Angeles International Airport—a welcome feature for frequent flyers and travelers.
- Downtown Los Angeles boasts a wealth of attractions and amenities. DTLA is chock-full of attractions and amenities, with near-endless options at nearly every price point. Shops and boutiques in the area, for instance, run the gamut from fast fashion to haute couture, which makes for a one-of-a-kind shopping experience for residents and visitors. The same can be said for food establishments in the various neighborhoods, which range from Michelin-starred restaurants to blink-and-you’ll-miss-it family-run diners and roadside taquerias.
Tips on buying a home in Downtown Los Angeles
It’s no secret that Downtown Los Angeles is a great place to live in. As with similar areas, however, finding a home in this in-demand part of the Southern California can be a long—if at times frustrating—process.
That said, here are some tips on how to buy your own home in Downtown Los Angeles:
- Figure out the best time to buy. While there really isn’t a hard and fast rule on when to buy a house, most real estate professionals point to fall as one of the best times to do so. This is because there are fewer buyers on the market at this time and this makes most sellers eager to sell. In hot markets like Los Angeles, however, it may be more prudent to buy a home as soon as you have your finances sorted. You’ll want to avoid getting edged out by other buyers.
- Plan your purchase and figure out your financing options. Before shopping around for homes in Downtown Los Angeles, take the time to visit your local banks and lenders to see what types of loans are available for you. Once you find one that fits your needs, send in an application, as well as copies of your financial documents, to your lender as soon as possible. This will give them enough time to verify your financial information, which is key to getting pre-approved for a mortgage. Some of the requirements include:
- Two years of federal tax returns for self-employed individuals, or two
years of W-2 statements and pay stubs for those who are on a payroll. - A debt-to-income ratio of 45% or lower.
- Bank and investment account statements.
- A credit score of around 700.
- Two years of federal tax returns for self-employed individuals, or two
- Study the available property types. Downtown Los Angeles is home to a diverse selection of housing options, which can prove overwhelming to first-time buyers. In order to streamline the entire process, try to study the properties you can find in the different neighborhoods, and check which ones match your needs and lifestyle. For instance, the renovated lofts in the Arts District are typically favored by those in the creative industry, while the units in the Financial District’s luxury high-rises are usually quickly snatched up by those who work in the area.
- Choose the right district. As with the property types, choosing a district to live in all boils down to your personal preference. For instance, if you are planning to live close to the best shopping and dining destinations in the city, the Financial District might be the perfect place for you. If you want to live in a community that’s steeped in culture and history, Little Tokyo and Chinatown may be a better option.
- Work with a Realtor. While it is entirely possible for you to go about the home buying process on your own, doing so can make everything longer and more fraught. It is generally recommended that you work with a Realtor in order to avoid any problems with your purchase. Some of the things a Realtor can help you with include the following:
- Provide up-to-date information on neighborhoods and the Downtown Los Angeles real estate market.
- Help you find a trustworthy real estate developer.
- Negotiate on your behalf.
- Craft attractive and legally sound offers.
- Screen homes for potential problems.
Navigate the Downtown Los Angeles real estate market with Clinton Wade of CLUTCH / ABODE, INC.
Operating out of Studio City, CA, Clinton Wade owns and leads CLUTCH / ABODE, INC., a boutique-style real estate brokerage that specializes in luxury real estate properties in Los Angeles and its surrounding areas.
Clinton has over 20 years of experience in the industry and is known for providing personalized, white glove service to his elite circle of clients.
Start your search for a Downtown Los Angeles property today. Call Clinton Wade of CLUTCH / ABODE, INC. at 310.403.9497or send a message here to get started.