Los Angeles County property market soars by record US$100b

PROPERTY values in Los Angeles County are projected to rise by a record US$100 billion this year, providing a boon to municipal coffers on the back of a hot housing market.

The amount translates to US$1.86 trillion in net value for taxable properties in the county, a 6 per cent increase from 2021, according to a May forecast of the county's assessment roll, which is used to plan local budgets. The increase is expected to result in more than US$18 billion in property tax revenue for governments that will be used for public services like education. The 6 per cent annual increase is greater than the rate of 2021 when the property tax assessment roll grew 3.7 per cent to US$1.76 trillion from the prior year.

"The pandemic for the past 2 years has caused great hardship to many parts of the economy, but not in the housing market," Los Angeles County assessor Jeffrey Prang said in a statement. "Low-interest rates, inflation, and high demand continued to boost home values to new highs."

Soaring property values have created an affordability crisis in LA, like most major cities across California. The county of 10 million residents has one of the country's largest populations of homeless people at nearly 60,000. Meanwhile, the median price of an LA home is US$1 million, up 14 per cent since last year, according to Redfin. BLOOMBERG