As more Los Angeles area real estate investors are wondering about buying property in North Hollywood, we wanted to share the facts and stats to help you decide if North Hollywood is a good place to invest in real estate.
Overview of North Hollywood
North Hollywood is a highly desirable market in the Los Angeles Metro Area. Located in the San Fernando Valley, between Valley Glen and Burbank, NoHo is an eclectic neighborhood of modest residential homes with easy access to local amenities, including the thriving NoHo Arts District. This diverse area offers lots of outdoor activities, beautiful weather year-round, and an exciting nightlife scene.
The majority of residents are renters, with only 27% of locals owning their homes. The area is largely made up of young professionals and is becoming increasingly popular with growing families. Around 51% of the population is between 25 and 54 years old. Proximity to entertainment studios, manufacturing plants, and large office buildings provides unlimited employment opportunities for NoHo residents.
North Hollywood Real Estate Market Highlights
Here is what you can expect from the NoHo housing market.
- Affordability. With a median home sales price of just under $800,000 (as of September 2023), property in North Hollywood is more affordable than in much of the LA area.
- Long-Term Appreciation. The median home price in North Hollywood has increased by 32% over the last five years, for an average appreciate rate of 6.4% per year.
- Strong Demand. Homes in NoHo are in high demand, as evidenced by the average home selling for 1.2% over the asking price within a month of being listed on the market.
- Growing Rental Rates. The median rental rate for a one-bedroom in NoHo is currently $1,750, up 9% from this time last year. Two bedrooms are up 14% to $2,498. And three bedrooms are up 18% to $4,300.
North Hollywood Amenities
NoHo is a convenient neighborhood, offering easy access to standard amenities like groceries, gas stations, and convenience stores. There is also a wide range of schools available to NoHo residents, including public, private, and charter schools. Additionally, premium amenities like fitness centers, boutiques, restaurants, and bars are all located within the area.
With the 170 freeway connecting to the 101 and the 134 at the southwest corner of NoHo, access to all of Los Angeles is within reach of this well-located neighborhood. Public transportation is also an option via North Hollywood Station, the northernmost stop on the LA subway line. Residents can even get to Hollywood Burbank Airport, which sits northeast, just outside the official NoHo geographic boundaries.
Locals are just a short drive from some of the most iconic locations in LA. The Hollywood Sign, Griffith Observatory, the Hollywood Bowl, the Hollywood Walk of Fame, and Mulholland Drive are all accessible with a quick trip through the Cahuenga Pass (maybe just plan around rush hour traffic). Being so close to some of the entertainment industry’s biggest studios, like Universal Studios, and Warner Brothers, there are opportunities for career advancement, celebrity sightings, and fun day trips near home.
This neighborhood is ideal for those looking to take advantage of the LA lifestyle without paying the higher prices of living in Hollywood proper.
Real Estate Investment Opportunities in North Hollywood
Certain investment types are performing exceptionally well in North Hollywood. Here are the top three investment opportunities in NoHo.
1. Single-Family Flips with ADUs
With home prices stabilizing as we close out 2023, traditional home flips no longer carry the profit margins they did in the early 2020s. However, home flips with ADU additions (ADU stands for accessory dwelling unit) can produce strong returns when done correctly.
ADUs are simply additional housing units added to a property. These separate living spaces can be used as guest houses, transition spaces for adult children, retirement accommodations for aging parents, or rental units that can generate a passive income stream for the property owner. Properties with ADUs are in high demand thanks to these varied opportunities. And with the streamlined permitting process in NoHo, it’s easier than ever to add ADUs to lots that can fit them.
2. Co-Living Spaces
As young professionals look to reduce rent costs in NoHo, they are taking on more roommates. However, the layout of a traditional two or three-bedroom apartment is not conducive to the co-living lifestyle. In these traditional layouts, the primary bedroom is nearly always larger and often comes with its own bathroom, while the smaller rooms share a bathroom. This has created an opportunity for developers and investors to design new multi-family apartments that work with today’s co-renters.
By developing multi-family structures with three or more bedrooms, all of equal size, and all with their own bathrooms, we can serve today’s financially-conscious renters, creating high demand and high return potential in the process.
3. Family-Friendly Rentals
With more families being priced out of North Hollywood’s housing market, there is more interest in long-term, family-friendly rentals. A BTR (Build to Rent) development model is ideal for this market of would-be buyers. Investors and developers can command higher rental rates and see less tenant turnover from buildings that were built specifically to meet the needs of growing families who want the feeling of home without the financial commitment.
Summary: Is North Hollywood a Good Place to Invest in Real Estate?
Based on the high demand and short supply of the North Hollywood housing market, North Hollywood is an excellent place to invest in real estate.
Invest in NoHo Real Estate with Gatsby Investment
You don’t have to buy a property on your own to take advantage of the NoHo real estate market. With Gatsby Investment, you can buy into pre-vetted real estate deals for as little as $25,000 and share in the rewards.
Gatsby offers a wide range of real estate investment opportunities, including the single-family flips, co-living developments, and BTR rentals we discussed in this article.
Learn more about investing with Gatsby and start investing in North Hollywood real estate today!