Home values in Los Angeles and Orange counties softened in the past year as economic challenges outweighed fears that January’s wildfire destruction could propel prices even higher.
My trusty spreadsheet peeked at a report from Zillow tracking total home values in the nation’s 50 largest metropolitan areas – including six in California. Zillow combines its valuations for all homes in various communities. Mortgage liabilities were not deducted from these values.
The report, which examined pricing for the year ending in June and the pandemic era (February 2020 through June 2025), revealed that L.A.-O.C. homes are now collectively valued at $3.9 trillion, according to this math.
Just how big is that? It’s 7% of the nation’s $55 trillion valuation, No. 2 among the 50 metros and trailing only New York City.
It’s also 36% of California’s $10.8 billion total housing bounty. And New York is the only state outside of California with a more valuable housing market than L.A.-O.C. Yes, bigger than Texas or Florida.
Nevertheless, that monetary heft did not stop Zillow stats from showing L.A.-O.C. values dipping $15 billion in the past year. That’s the seventh-largest dip in dollars among the 50 big metros.
It’s another signal that the three-year homebuying drought has finally chilled price appreciation. This slip in values translates to a 0.4% yearly decline, the 18th biggest percentage-point decline nationally.
Wildfires destroyed 12,000 structures around Altadena and Pacific Palisades – cutting housing supply and forcing victims to seek new living arrangements. Zillow says its calculations include some adjustments for fire damage, but its analysts acknowledge it is not a complete review of the fire’s fallout.
But more broadly speaking, it’s been a shaky year. The number of local homes put up for sale soared, boosting competition among sellers. Mortgage rates remained elevated, keeping affordability low. And the national economy and the local job market cooled, further stressing house hunters’ willingness to pay up for a home.
Please remember that while property owners may jeer the recent price declines – if not question the math – long-suffering house hunters see these dips as a glimmer of hope. Because no matter the calculus, prices remain lofty.
Since 2020, Zillow stats show L.A.-O.C. values have increased by $1.3 trillion, the No. 2 dollar gain among the metros. That’s a 49% jump, though it ranked just 33rd among the metros for percentage-point moves.
Southern swoon
Wobbly prices in L.A.-O.C. are no oddity.
Statewide, home values were down $106 billion, or 1%, over 12 months, according to Zillow. Since 2020, California’s overall home value has increased $3.4 trillion or 46%.
In San Diego, home values were off $22 billion in the year, the fourth-largest dip among the 50 metros, to $1 trillion (No. 9). That 2% decline ranked eighth-largest among the metros.
Since 2020, San Diego’s values rose $404 billion (No. 6), or 64% – the 13th largest percentage-point rise.
The Inland Empire squeezed out a minor gain: up $1 billion (the 29th largest gain among the 50) to $849 billion, the No. 15 metro. That 0.1% gain ranked No. 30 among the metros.
Since 2020, Inland values are up $326 billion (No. 14 dollar gain) or 62% – the nation’s 15th largest percentage increase.
But nationally, values grew by $862 billion, or 2%. That’s part of a $20 trillion surge to $55 trillion, or 57%, since 2020.
Still, U.S. gains are not universal: 19 of the 50 big U.S. metros had declining values in the past year.
Frozen north
Northern California home values tumbled in its three metros tracked by Zillow.
San Francisco had the nation’s most significant yearly dip, based on dollar values.
Valuations were off $53 billion to $1.85 trillion, the nation’s No. 3 market. That 3% decline ranked fourth-worst among the metros.
And while the $366 billion value increase since 2020 ranked it No. 8 among the metros, that translates to a 25% gain, the nation’s smallest on a percentage basis.
San Jose’s $10 billion dip was the 11th largest drop and put total values at $995 billion, the nation’s 10th largest. That 1% decline ranked 13th biggest. Since 2020, San Jose’s values have increased $313 billion (No. 15) or 46% – No. 40.
And Sacramento was down $4 billion (16th-biggest drop) to $498 billion (No. 19). That 1% decline was the 16th-largest. Since 2020, Sacramento values have increased by $146 billion (No. 24) or 41% – No. 45.
PS: For detailed valuation stats, go to bit.ly:june25values online.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com