Los Angeles Condo Sales Hit 20‑Year Low as Prices Slip 5% in February

Why It Matters

The contraction in Los Angeles condo sales signals a broader cooling of the high‑price residential segment, a bellwether for the city’s overall housing health. A sustained slump could depress property tax revenues, limit equity gains for owners, and intensify the affordability crisis that has plagued the region for years. For developers, the shift away from condo projects toward rental apartments reshapes the supply pipeline, influencing construction employment, financing structures, and long‑term urban density patterns. Policymakers will need to weigh regulatory reforms against market signals to ensure a balanced housing ecosystem that serves both owners and renters.

Key Takeaways

• Only 1,976 condos sold in LA County Jan‑Feb, a 20‑year low per Attom data
• Median condo price fell 4.5% YoY in February, while single‑family homes dropped 1.6%
• Sales are >40% lower than the 2019 peak and 11% down from a year earlier
• New apartment construction in LA County fell 33% YoY in Q4 2025, versus a 10% rise in San Diego
• Developers cite high land, labor costs and strict regulations as reasons to avoid condo projects

Pulse Analysis

The Los Angeles condo slowdown is less a crash than a market correction after years of pandemic‑fuelled price inflation. Attom’s data shows a plateau rather than a sharp decline, suggesting that price expectations have finally aligned with buyer purchasing power. High mortgage rates—hovering near 7%—have squeezed affordability, especially for the $700,000 median condo price point, pushing many would‑be buyers toward single‑family homes or the rental market.

Historically, Los Angeles has relied on a steady flow of condo construction to diversify its housing stock and absorb population growth. The recent 33% drop in new apartment starts indicates a supply bottleneck that could exacerbate the city’s chronic shortage of affordable units. If developers continue to favor rentals, the city may see a surge in higher‑priced multifamily units, further widening the gap between income levels and housing costs. Policy interventions—such as streamlined permitting, reduced impact fees, or targeted subsidies for condo development—could revive the segment and restore a more balanced housing mix.

In the short term, the market will likely remain in a holding pattern. Buyers who can secure financing will continue to target the limited inventory, keeping prices relatively stable, while the broader economy’s trajectory—particularly employment trends in tech and entertainment—will dictate whether demand rebounds. Stakeholders should monitor the upcoming Attom Q1 report and any municipal zoning reforms, as these will be key indicators of the market’s direction in the second half of 2026.