The Case for Market Stability in Playa Vista (Part 2)

Last month we discussed the possibility of a sharp decrease in property values in Playa Vista over the next two years, but market conditions in Playa Vista suggest stability, not decline. While affordability challenges and macroeconomic uncertainty exist, the fundamentals of supply, demand, and long-term value appreciation point toward continued growth.

For the purposes of this article, we’ll argue the opposite of a “20% correction” scenario, instead making the case that median values in Playa Vista will remain stable or trend upward from their June 2025 median of ~$1.43M, even amid a higher-interest rate environment.

Demand Remains Resilient

Playa Vista continues to attract high-income buyers who prioritize lifestyle amenities, proximity to tech employment, and access to the Westside and Beach Cities. Despite interest rates more than doubling since 2021, the median home price has been largely flat in Playa Vista since mid-2022.

Homes are selling faster, not slower. According to Redfin data, average days on market in 90094 fell to 43 days in July 2025, down from 58 days a year earlier, a ~25% decrease year-over-year. Such velocity indicates limited buyer hesitation, at least for the properties that are selling and contributing to the current values.

Supply is Limited

Inventory in Playa Vista has increased somewhat, but remains tight. Only 16 homes were listed in June 2025, a 6% decline month-over-month. Fewer sellers mean less downward pressure on prices, even as demand persists.

In another development, de-listings have increased. In the three-month period ending August 2025, there were 24 separate properties in Playa Vista that were removed from the market either by the listing expiring or being voluntarily withdrawn or canceled. While some of these did eventually re-list, homeowners holding onto their properties if they are unable to get their desired price is a growing trend, one which makes it much more difficult for values to fall. This phenomenon is statewide. A recent CalMatters analysis emphasized that most California homeowners are “locked in” to low pre-2022 mortgage rates, making them reluctant to sell. The result is a persistent supply shortage that cushions against major corrections.

Competition Drives Pricing Power

Even with affordability concerns, buyer competition remains evident. According to CRMLS, in June 2025, 36% of closings in 90094 sold above list price. (4 out of 11 total sales). While this is a below average volume of sales for one of the peak months of the year and not a majority selling above asking, this distribution still reflects competitive bidding for well-positioned properties.

Mixed performance by property type also suggests nuance, not collapse: while one and three-bedroom units dipped year-over-year, four-bedroom homes increased in value by ~1.5%, showing that family-sized residences in desirable submarkets remain highly sought after.

Economic Anchors Remain in Place

While entertainment and tech employment face headwinds, the Los Angeles economy remains diverse and globally relevant. Playa Vista is not a bedroom community dependent on a single employer or sector; it is a hub for professionals across multiple industries, including healthcare, education, finance, and law.

Additionally, West L.A. remains supply-constrained by zoning, coastal geography, and slow and expensive development. This structural limitation protects property values even when certain job sectors soften.

Real Estate’s Historical Trajectory

It is true that real estate is cyclical, but Playa Vista’s trajectory has consistently reflected resilience. Following the Great Recession, Playa Vista rebounded strongly, benefitting from a surge of investment in the Silicon Beach area. As mentioned in last month’s article, since 2011, local values have more than doubled, underscoring long-term appreciation.

Even during past slowdowns, values in prime Los Angeles submarkets, including the Westside and lifestyle communities like Playa Vista, have proven sticky. While small short-term corrections are possible, the lack of overbuilding, limited distressed inventory, and strong equity positions of current owners all reduce the likelihood of a repeat of 2008. Instead, today’s environment resembles periods of stabilization, where values pause temporarily before resuming upward growth.

Final Thoughts

The case for a sharp correction in Playa Vista overlooks powerful counterforces such as resilient demand, limited supply, competitive bidding, and Los Angeles’ long-term growth trajectory. Even in a high-rate environment, buyers continue to pay a premium, and sellers remain reluctant to list or settle for below peak pricing. 

Instead of a 20% decline, a more likely scenario is a slow-paced, stable or modestly appreciating market. Once borrowing costs eventually ease, while supply is also likely to rise, pent-up demand could quickly lead to resumed price gains, particularly in supply-constrained lifestyle neighborhoods like Playa Vista, which creates a buffer against broad downturns. Unlike the oversupply conditions of the late-2000s housing bubble, current fundamentals favor price support. The evidence suggests values here are far more likely to stabilize or rise than to dramatically correct.