Tenement and condominium housing in Southern California are soaring as the U.S. housing market recovers from the historic market crash, according to a report released Tuesday.
The median sales price for tenement and condo housing in the Los Angeles metro area reached $5,821,000 in the second quarter of 2017, according a report from the National Association of Realtors.
That is up 5.7 percent from a year ago, according the report.
Tenements in the city have also gained 7.3 percent since January 2018, while condos have climbed by more than 15 percent.
The report noted that many new homes sold in the market are being built in tenement neighborhoods.
Tenement homes are the most expensive type of housing, the report said.
Tenement housing also reached $2,928,000 for single-family dwellings in the LA metro area in 2017, the first time that has happened since the housing crash in 2008.
That was up 6.4 percent from the previous year.
The report said that was the highest price for a single-detached home in the area since the 2010 Census, which showed that the median price for such a home was $2.3 million.
The housing market recovery in Southern and Central California has led to an overall uptick in rental stock, the NAR report said, citing a rise in listings for tenements, condos and other types of housing in Los Angeles and Orange counties.
But rental stock is a “substantially smaller percentage of the total housing stock” compared to the 2008 crash, the group said.
A key driver behind the recent gains in rental demand is the influx of buyers in the last six months, the NAR said.
The market’s recent uptrend in the price of housing was driven by an increase in demand for rental housing, which was driven largely by young families, the organization said.
Young families are particularly vulnerable to the current market downturn.
They are often at the mercy of landlords who are less willing to raise rents and are more concerned about maintaining their properties, the study said.
The rental market is also becoming more expensive for older and lower-income households.
Rental prices are expected to continue to rise in the near future as demand for housing continues to increase, the NRG Foundation’s Matt Riedel said.