American Horizons

The Los Angeles property market continues to attract domestic and international buyers despite economic pressures, changing work patterns and ongoing housing supply challenges. According to Shauna Walters of Sotheby’s International Realty – Beverly Hills Brokerage, demand remains strong across key sectors, with luxury neighbourhoods continuing to command significant interest.

Discussing changes in buyer demand, Shauna says: “Over the past few years, demand across Los Angeles has shifted in several ways. Most recently, the fires in Los Angeles created a significant amount of local movement and buyer activity, as many families were suddenly forced to relocate and secure housing quickly. On the international side, we have also seen buyers begin returning to the Los Angeles market in a meaningful way, particularly within the Asian community. During COVID, international activity slowed significantly due to travel restrictions and global uncertainty, but over the last couple of years we have seen renewed interest from buyers coming from China, Japan, Singapore, and Taiwan. Los Angeles continues to be viewed globally as a lifestyle city with long term value, especially for buyers looking for privacy, weather, entertainment, and luxury living.”

While demand remains broad across the city, some areas continue to outperform others. Shauna explains: “Beverly Hills continues to be one of the most desirable and resilient luxury markets in Los Angeles, largely because inventory remains extremely limited. Buyers still view it as one of the premier locations globally, with strong long-term value and prestige. The Beverly Hills school district is a major driver of demand, as many families prioritise the exceptional schools, along with the overall feeling of safety and security the area provides. The Beverly Hills Police Department is also highly regarded and contributes to the strong sense of security that many buyers are looking for today.”

The expectations of luxury homebuyers have also evolved. Wellness, convenience and lifestyle-focused features are becoming increasingly important when purchasing premium properties. As Shauna notes: “Today’s luxury buyer wants a home that truly feels like a sanctuary and a place where they never have to leave if they do not want to. Wellness has become a huge focus, with buyers prioritising amenities like gyms, saunas, cold plunges, and resort style outdoor spaces. Tennis courts have become popular again, along with pickleball and padel courts. Entertainment focused amenities are also important, including home theatres, indoor outdoor entertaining spaces, and fully integrated smart home technology. Buyers want homes that support both lifestyle and convenience at the highest level.”

Economic factors have also shaped purchasing decisions. According to Shauna: “Interest rates have absolutely impacted the market, but I also think buyers eventually adjust. There is initially some shock value whenever rates rise, especially after years of historically low rates, but if you look at the broader history of real estate, today’s rates are not abnormal. Many buyers are starting to recognise that waiting could actually create more competition if rates eventually come down again. Remote work has also shifted priorities significantly, with buyers wanting larger homes, more flexible spaces, and properties that support both work and lifestyle.”