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Buying a home in Los Angeles, California

Los Angeles median home value: $947,900 (Census ACS 2024). Property tax starts at 1% of the purchase price plus voter-approved debt (Proposition 13).

In short

The median value of owner-occupied homes in Los Angeles is $947,900 (Census ACS 2024; owner estimates, not sale prices). The FHFA House Price Index shows California prices down 0.2% and Los Angeles–Long Beach–Glendale prices flat (+0.0%) between the second quarters of 2025 and 2026. California has no state transfer tax; counties and cities may charge one. Selling a main home you owned and lived in for 2 of the last 5 years, the first $250,000 of gain ($500,000 for a married couple filing jointly) is excluded from federal income tax (IRS Publication 523).

Calculate for Los Angeles

If you buy

California state transfer tax

California has no state transfer tax; counties and cities may charge one.

Price$947,900
State transfer taxnot computed
Who paysSet by the purchase contract

Default price: the Los Angeles median value of owner-occupied homes, $947,900 (Census ACS 2024). Not computed: No state tax. The tax is set by county and city, so it cannot be computed from the state alone. Who pays: Neither the state statute nor the City of Los Angeles FAQ assigns the tax; the purchase contract and escrow instructions decide. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. California transfer tax guide · all 50 states.

Local taxes in Los Angeles, on top of the amount above at $947,900: $5,309. Rates, who pays and sources: transfer tax in Los Angeles.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: California state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

In short

The median value of owner-occupied homes in the city of Los Angeles is $947,900, according to the Census Bureau’s 2024 American Community Survey. Under Proposition 13, property tax is 1 percent of assessed value plus voter-approved debt, and a purchase resets the assessment to market value, says the State Board of Equalization.

How much homes cost in Los Angeles

The Census Bureau’s American Community Survey (ACS) asks owners what they think their home would sell for. The median answer is not a sale price: it covers every owner-occupied home, including homes bought long ago. Our page on California home prices explains the method in detail.

AreaMedian value, 2024 (ACS)Margin of error (90%)
City of Los Angeles$947,900±$10,150
Los Angeles County$866,500±$4,947
Los Angeles–Long Beach–Anaheim metro area$908,500±$4,270
California$759,500±$3,644
United States$360,600±$618

Source: U.S. Census Bureau, ACS 1-Year Estimates 2024, table B25077. The 2025 estimates are scheduled for October 29, 2026.

The city median is $188,400 above the California median and more than two and a half times the national median.

Are Los Angeles prices rising?

The Federal Housing Finance Agency (FHFA) tracks repeat sales of the same single-family homes. Its purchase-only, seasonally adjusted index for the Los Angeles–Long Beach–Glendale metro division, published August 25, 2026, shows:

Area1-year change (Q2 2025 to Q2 2026)5-year change (Q2 2021 to Q2 2026)
Los Angeles–Long Beach–Glendale metro division+0.0%+19.5%
California−0.2%+17.3%
United States+2.1%+33.4%

Source: FHFA House Price Index, quarterly purchase-only files. Changes calculated by Payotte from the published index values.

Prices in the Los Angeles area were flat over the past year, after a gain of about a fifth over five years.

Closing costs

On top of the price, buyers and sellers pay closing costs: lender fees, the appraisal, escrow and recording fees, title insurance and transfer taxes. Several depend on the loan and the providers you choose, so there is no single official figure. The rules that apply to a sale in the city of Los Angeles, who usually pays each item and a worked example are in our guides to closing costs in California and transfer tax in California.

Property tax in Los Angeles

California’s property tax rests on Proposition 13, approved by voters on June 6, 1978. The State Board of Equalization (BOE) summarizes the rules in its March 2025 overview (Publication 29):

  • The rate. The tax rate is 1 percent, plus the amounts needed to pay voter-approved bonded indebtedness and debt incurred before July 1, 1978. That second part depends on the bonds that apply to each property, so the total rate varies by address.
  • The value. A property is reassessed to current market value only when it changes ownership or new construction is completed. This is called the base year value. After that, increases in the base year value are generally limited to 2 percent a year.
  • The supplemental bill. After a purchase, the county places the new value into effect right away through a supplemental assessment, prorated for the rest of the fiscal year, instead of waiting for the next January 1 lien date.
  • The homeowners’ exemption. The Constitution requires a $7,000 reduction of taxable value for an owner-occupied principal residence. You file once with the county assessor; February 15 is the deadline for the full exemption.
  • Payment. Regular secured tax bills are mailed by November 1 and paid in two installments: the first becomes delinquent after December 10, the second after April 10. Late payment carries a 10 percent penalty.

A worked example

Take a purchase at the city median, $947,900, by a buyer who lives in the home:

  • Taxable value after the homeowners’ exemption: $947,900 − $7,000 = $940,900.
  • The 1 percent base levy: $940,900 × 1% = $9,409 a year.
  • Add the rates for voter-approved debt that apply to the property. Your tax bill lists them.

For the full bill and how to appeal a value, see our California property tax guide. To pay property tax through your monthly mortgage payment, read our guide to escrow accounts.

Natural hazards and insurance

Natural hazards affect what you must be told before you buy and what your insurance covers. Our page on natural hazards and insurance in California explains the official hazard maps, the disclosures and the insurance options. The seller’s side is covered in seller disclosure in California.

Buying a rental property: the Rent Stabilization Ordinance

If you buy a home with tenants, or plan to rent one out, check whether the units fall under the city’s Rent Stabilization Ordinance (RSO). According to the Los Angeles Housing Department (LAHD), as of September 2026:

  • The RSO generally applies to rental properties first built on or before October 1, 1978, including apartments, duplexes, two or more single-family dwellings on the same parcel, condominiums and townhomes, and accessory dwelling units. For condos and townhomes, the rent amount is not regulated for tenancies that started after December 31, 1995.
  • Rent may be raised once every 12 months by the allowable percentage. LAHD’s bulletin sets it at 3 percent from July 1, 2026, through June 30, 2027. Since February 2, 2026, the increase can no longer include an extra percentage for utilities.
  • New owners have 45 days to register their rental property with LAHD, and every unit rented or offered for rent must be registered each year.
  • Evictions must rest on a legal reason. An owner or immediate family member moving in is a “no-fault” reason, and no-fault evictions require relocation assistance to the tenant.

Properties outside the RSO are still covered by the city’s Just Cause Ordinance, LAHD notes; it can confirm whether a unit is subject to the RSO. Statewide rules are on our page about tenant rights in California.

California guides for Los Angeles buyers

Frequently asked questions

What is the median home price in Los Angeles?

The Census Bureau’s 2024 American Community Survey puts the median value of owner-occupied homes in the city of Los Angeles at $947,900 (±$10,150). This is what owners think their home is worth, not the median sale price of recent sales.

Are home prices in Los Angeles going down?

According to the FHFA purchase-only index, prices in the Los Angeles–Long Beach–Glendale metro division were flat (+0.0%) between the second quarter of 2025 and the second quarter of 2026. Over five years, they rose 19.5%. California as a whole fell 0.2% over the year.

How is property tax calculated when I buy in Los Angeles?

The purchase resets the assessed value to current market value. The tax is 1 percent of that value plus the rate for voter-approved debt, according to the State Board of Equalization. After that, the assessed value can generally rise by no more than 2 percent a year until the next sale.

What is a supplemental property tax bill?

It is a prorated bill that puts the new value into effect for the rest of the fiscal year after a purchase. It comes on top of the regular annual bill.

Is my rental unit in Los Angeles rent-controlled?

The city’s Rent Stabilization Ordinance generally covers rental properties first built on or before October 1, 1978. For covered units, LAHD sets the allowable increase at 3 percent from July 1, 2026, through June 30, 2027. LAHD can confirm whether a specific unit is covered.

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Sources

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