Los Angeles area is known for its high housing prices. In the just-passed 2024, due to factors such as inflation and property transfers, the overall property valuation in the region increased again, reaching a total net value of $2.094 trillion. The property valuations in several popular cities are on the rise.
Every year, Los Angeles County conducts a new round of property value assessment for all taxable properties in the county in accordance with the California Constitution, and the results are recorded in the “Assessment Roll.” This “Assessment Roll” is helpful for the public and investors to gain a deeper understanding of the housing market and economic conditions in each city.
Los Angeles County Assessor Jeffrey Prang stated that the total net value of properties in Los Angeles County in 2024 increased by 5.91% ($970 billion) compared to the previous year, reaching $2.094 trillion. This reflects the continued strong development in the single-family housing market.
The report pointed out that there were primarily two reasons driving the increase in assessment values: inflation adjustments contributing to a $39 billion increase in valuation, and property transfers contributing $53 billion.
In the 2024 report, the Assessor’s Office divided the property valuations of all 88 cities in Los Angeles County.
Among all cities, Inglewood saw the largest increase in property valuation, soaring from over $16.1 billion in 2023 to over $19.3 billion in 2024, a whopping 20.2% increase.
Los Angeles County covers several popular real estate cities, including densely populated areas of the Chinese community, all of which showed an upward trend in property valuations in 2024. Among them, San Gabriel City saw a 5.3% increase, Arcadia 4.5%, Temple City 4.3%, Rosemead City 5.1%, Monterey Park City 5%, South El Monte 6.4%, El Monte 4.7%, Azusa 6.2%, and Baldwin Park City 5.2%.
Although the overall sales volume in 2024 did not match the impressive figures during the pandemic, housing prices across the state remained high. As of October last year, the median house price in California exceeded $888,000, while the average median house price in the United States was around $400,000.
Prang also reminded homeowners not to overlook a property tax relief assistance – California’s “Homeowners’ Exemption” (HOX) program.
The “Homeowners’ Exemption” program stipulates that if a property is the homeowner’s primary residence before January 1st, the assessed value of the property will automatically be reduced by $7,000, meaning homeowners can save $70 on property taxes annually. Homeowners only need to apply once to be eligible for the exemption every year until a change in ownership occurs. The exemption amount will be reflected directly on the homeowner’s property tax bill.
Since 1974, California has fully implemented the “Homeowners’ Exemption” program, with the annual deadline for applying and obtaining the full exemption being February 15th.
However, Prang found that nearly one-third of homeowners in Los Angeles County have not applied for this benefit, leaving $40 million in unused relief every year. He encouraged homeowners to take advantage of the county’s new e-File service, which allows homeowners to apply for the “Homeowners’ Exemption” program online with just one application.
Furthermore, California’s Proposition 19, which is currently in effect, has changed the way property transfers between parents and children (or grandparents and grandchildren) are taxed. Under the current law, exemptions are only available when transferring a family home (primary residence), and the parties involved must apply for the homeowner’s exemption within one year of the transfer to qualify for tax breaks.