While much of the country’s housing market is wrestling with sharp slowdowns, Southern California is holding its ground. Both builders and home purchasers are benefiting from a razor-thin supply, steady sales, and plenty of buyers eager to plant roots in the region.
A powerful engine backs SoCal’s housing market. Both Los Angeles and Orange County contain a globally competitive job supply, enviable homeowner equity, and a laid-back appeal that continues to attract young professionals, even in an era of remote work.
The Key Factors Benefiting the SoCal Housing Market According to NewHomeSource Data:
Job growth: Total non-farm jobs rose 0.7% in June, and SoCal ranks as the third-largest metro economy in the country.
Corporate muscle: 11 Fortune 500 companies are based in the area, with several nestled in neighboring counties.
Trade hub: The LA and Long Beach ports move more than 30% of all U.S. container cargo.
Population growth: SoCal’s population increased 0.3% in 2024, making it the second-largest gain in the nation by size.
Migration rebound: Net migration grew for the first time in 14 years, adding 7,660 residents via international arrivals.
Generational appeal: Millennials rank LA, Orange County, and San Diego among their top dream destinations. Gen Z already makes up 10% of the region’s population.
Supply squeeze: There were only 155 active projects in June, down 50% from 2019. Meanwhile, quick move-in homes averaged only 1.9 per community.
Sales stability: Communities are selling 2.4 homes per month on average, matching last year’s pace and topping 2022.
Equity edge: Homeowners hold an average of $627K in equity with more than double the U.S. average of $300K.
