Thanks to technology companies such as Snapchat , Google, Yahoo!, YouTube, Facebook, Buzzfeed, and Salesforce opening regional offices and headquarters in L.A., Westside Los Angeles has become a tech hotspot in recent years. This booming area of L.A., often referred to as “Silicon Beach” modeled after our California tech neighbor’s in San Francisco’s “Silicon Valley,” includes Westside neighborhoods Santa Monica, Venice, Playa Vista, Playa Del Rey, Westchester, and Mar Vista.
With over 700 tech companies in and around Silicon Beach, housing prices have surged on the Westside of L.A. with demand at an all time high and inventory remaining low. Venice, the epicenter of Silicon Beach, has seen the biggest price surges, with the median single-family home sales price was up 70% in 2016 versus 2012, and up 16% since 2015.
The effects of the tech growth in LA have begun to spread to areas outside of the primary Silicon beach neighborhoods such as Marina Del Rey and Hermosa Beach. Other start-up pockets have also recently emerged in nearby Culver City, West L.A., Westchester, El Segundo, Downtown Los Angeles, Beverly Hills, and Hollywood.
Industry experts expect prices to continue to rise as more and more tech companies develop in the Silicon Beach area. Buyers are willing to pay for the accessibility that Silicon Beach offers including the ability to walk or bike to work, the low-key beach lifestyle, convenience to LAX, and perfect weather year round. Compared to other tech-based cities such as San Francisco or New York, L.A. home prices are relatively affordable. With no signs of a slow down in Silicon Beach real estate, experts recommend buyers take advantage of the current market before growth reaches price points similar to Silicon Valley.