Migration Shifts and Their Effect on Real Estate
- 19 January 2026
- Munif Ali
People are moving around Los Angeles more than ever due to the increased flexibility of remote work and the high cost of living. Since the pandemic, many have started rethinking where they want to live. As a result, migration and real estate trends are evolving rapidly. These changes matter a lot—especially if you’re a homeowner trying to keep your property valuable, a renter looking for something affordable, or a real estate agent working in a shifting market.
The Rise of Remote Work and Its Influence on Housing Demand
The shift to remote work has changed where and how people choose to live. Before the pandemic, many workers had to live near their offices in busy areas like downtown Los Angeles or the Westside. However, once working from home became more common, people realized they didn’t need to stay in expensive neighborhoods just to be close to work.
This newfound freedom has led many to relocate to areas with more space, lower costs, and a higher quality of life. As a result, areas outside the city center, such as suburban neighborhoods or smaller cities nearby, have seen increased interest from homebuyers.
According to a study by Mondragon and Wieland (2022), this trend has had a big impact on the housing market. People leaving crowded, high-cost areas have increased demand in previously overlooked places. The Federal Reserve Bank of San Francisco reported that remote work may be responsible for more than half of the increase in home prices following the end of the pandemic.
This shows a strong connection between migration and real estate. As more people can work from anywhere, their decisions about where to live reshape housing demand in and around Los Angeles. Real estate professionals, homeowners, and renters must stay informed about these changes to make smart decisions.
Impact on Los Angeles Neighborhoods
Los Angeles neighborhoods are experiencing notable shifts due to changing migration and real estate trends.
The housing market in Los Angeles is becoming more favorable for buyers. With increased available homes and a slowdown in sales, buyers are finding themselves in a stronger position to negotiate prices. According to recent data, the typical home sells for 2% less than its asking price, marking the largest discount in two years (Redfin, 2025). Also, homes take longer to sell, giving buyers more options and time to make informed decisions.
A significant decrease in new apartment construction is also impacting the housing market. In the first quarter of 2025, Los Angeles issued permits for only 1,325 new homes, a nearly 57% drop from the same period in the previous year (Los Angeles Times, 2025). This decline in construction permits may lead to a reduced supply of rental units in the future, potentially driving up rent prices in certain areas.
These developments indicate a shift in the balance between supply and demand in Los Angeles’ real estate market. While buyers may benefit from increased negotiating power, the decrease in new housing construction could lead to tighter rental markets and higher rents. Understanding these trends is crucial for homeowners, renters, and real estate professionals navigating the evolving landscape of migration and real estate in Los Angeles.
Opportunities for Real Estate Stakeholders
Although these changes can be challenging, they also open up new opportunities, particularly for landlords, property managers, and investors. Landlords can stay competitive by offering features that remote workers need, such as fast internet, shared office spaces, or more flexible lease terms.
Investors can also benefit by focusing on areas that are becoming increasingly popular due to migration. Buying homes in these neighborhoods or fixing up older properties to meet the needs of today’s mobile workforce can be a smart move. For real estate agents and brokers, staying up-to-date with migration and real estate trends is more important than ever. This helps them guide clients through a market that’s changing fast.
Los Angeles is undergoing a shift as more people work remotely and seek affordable places to live. These migration changes are shaping housing demand, prices, and investment strategies. When buyers, sellers, and real estate pros understand what’s happening, they can make better decisions. Observing how migration impacts real estate enables everyone to plan for the future.
Ready to navigate Los Angeles?
At Pacific Playa Realty, we stay ahead of trends, enabling our agents and clients to make informed, future-ready decisions. If you’re an agent who’s passionate about creating beautiful spaces and delivering standout service, we want to hear from you.
Key Takeaways
- Since the rise of remote work, many people no longer need to live close to their jobs. This has led to increased demand in more affordable neighborhoods outside of central Los Angeles.
- Home prices in many LA neighborhoods are leveling off, giving buyers more negotiating power. Homes are selling below asking price, and new construction is slowing down.
- With fewer new apartment buildings being approved, there may be fewer rental units available in the future, particularly in high-demand areas, which could result in higher rent prices.
- Landlords, investors, and agents who track migration and real estate trends can discover new opportunities, such as targeting remote workers with modern amenities or investing in emerging neighborhoods.
References:
- Bell Property Management. (n.d.). How renter migration is affecting the Los Angeles rental market. Retrieved from https://www.bellprop.com/blog/how-renter-migration-is-affecting-the-rental-market
- Khouri, A. (2025, April 22). L.A. housing construction plunged at start of the year. Los Angeles Times. https://www.latimes.com/california/story/2025-04-22/los-angeles-housing-construction-plunged-to-start-the-year
- Khouri, A., & Do, P. (2025, April 17). Southland home price growth is slowing down. Whose market is it now? Los Angeles Times. https://www.latimes.com/california/story/2025-04-17/housing-tracker-for-march
- Lester, D. C. (2024, November 6). Study Reveals the Hottest U.S. Migration Trends – The MortgagePoint. The MortgagePoint -. https://themortgagepoint.com/2024/11/06/study-reveals-the-hottest-u-s-migration-trends/
- Mondragon, J., & Wieland, J. (2022). Housing demand and remote work. Federal Reserve Bank of San Francisco. Retrieved from https://www.frbsf.org/wp-content/uploads/wp2022-11.pdf
- Redfin. (2025, April 25). Housing market update: Homebuyers are backing off, sellers are too. https://www.redfin.com/news/housing-market-update-homebuyers-sellers-april-2025/