Is West Adams a Good Place to Invest in Real Estate?
By Michelle Clardie on 01/31/2025.
Reviewed by Josefin Gatsby
West Adams is one of Los Angeles' most historic and rapidly evolving neighborhoods. Known for its stunning early 20th-century architecture and proximity to major employment hubs, West Adams is a desirable neighborhood for renters and buyers alike. The urban/suburban mix offers single-family homes and multi-family properties alongside local businesses.
But is West Adams a good place to invest in real estate?
In this article, we’re analyzing local market data to see what West Adams can offer real estate investors. This information will help you decide if this neighborhood is the right location for your next real estate investment.
Overview of West Adams, Los Angeles
West Adams is centrally located just south of the 10 Freeway, between Western Avenue to the west and Vermont Avenue to the east, with quick access to Downtown LA, Culver City, Mid-City, and USC. This location makes it a prime spot for students and professionals. The neighborhood has been experiencing a wave of revitalization, driven by a combination of private investors and city-led infrastructure improvements.
Once a hidden gem, West Adams has seen an influx of new restaurants, coffee shops, and creative spaces, attracting younger professionals and families. While dominated by long-term renters over the last few decades, a recent rise in home purchases suggests an increasing interest in homeownership.
West Adams Real Estate Market Highlights
Here is what you can expect from the West Adams housing market.
Strong Property Appreciation. The median home sales price in West Adams is approximately $1,125,000 (as of December 2024). Over the past five years, property values have appreciated by an average of 8.23% per year, outpacing many other LA neighborhoods.
Healthy Buyer Competition. Homes in West Adams tend to sell for 99.9% of the list price, with average days on the market hovering around 30 to 45 days.
Increasing Homeownership Opportunities. While historically a renter-heavy neighborhood, West Adams is seeing more first-time homebuyers entering the market.
West Adams Amenities
Once home to Los Angeles’ wealthiest residents, West Adams offers stunning historic architecture, including Victorian mansions and Craftsman bungalows, many of which are included in Historic Preservation Overlay Zones, protecting the neighborhood's aesthetic.
Today, West Adams is known for its vibrant art scene, thriving small businesses, and diverse eateries. The district is home to many art galleries, museums, and cultural centers, cementing its reputation as a growing hub for the arts. Boutique hotels and interesting entertainment venues attract visitors who often consider relocating to this area.
With convenient access to major freeways and public transit, it’s easy to get to downtown LA from West Adams. This allows locals to enjoy major landmarks like the Los Angeles Convention Center, Crypto.com Arena, and the Los Angeles County Museum of Art.
While there are smaller green spaces within the neighborhood, residents also appreciate being close to larger recreational areas just outside the district, including Culver City Park and the Kenneth Hahn State Recreation Area.
Real Estate Investment Opportunities in West Adams
West Adams presents multiple strategies for real estate investors looking to capitalize on the neighborhood’s growth. Here are two key investment approaches that are currently proving successful.
1. Value-Add Tenants-in-Common (TIC)
Tenants-in-common (TIC) is a type of real estate ownership where multiple individuals share legal rights to a single property. Each owner holds a percentage of the property, but their ownership is undivided, meaning it isn’t tied to specific physical sections of the property. This differs from condominiums, where owners have a divided interest, with each buyer owning their unit while sharing common spaces.
A value-add TIC involves investors purchasing an existing multi-family property, renovating it, and then selling it to a group of homeowners.
West Adams presents strong potential for value-add TIC opportunities due to several factors:
Community development. West Adams is experiencing significant revitalization, with new developments and renovations bringing renewed energy to the area.
Demand for attainable homeownership. Buyers want to own property in West Adams, but with the high price of local single-family homes, TIC provides a more affordable alternative.
Supply of older multi-family homes in need of updating. With many of the structures in West Adams having been built before 1950, there are suitable properties primed for a value-add renovation.
2. Home Flips
Traditional home flips don’t offer the high profit margins they did in the early 2020s. However, many older homes in West Adams have impressive value-add potential for flippers, especially if they are located on a large enough lot to build an accessory dwelling unit (ADU).
ADUs are additional housing units built on a property. They can serve as guest houses, transitional spaces for adult children, retirement suites for aging parents, or rental units that generate passive income for the owner. The demand for properties with ADUs is high due to these versatile uses. In North Hollywood (NoHo), the streamlined permitting process makes it easier than ever to add ADUs to eligible lots.
Flips with ADU additions can work well in West Adams because:
Interest in architectural details. High-income buyers are willing to pay more for historic homes with original architectural details, particularly when they are well-renovated and move-in-ready.
Demand from multi-generational households. Homes with ADUs are ideal for the growing number of families that want to provide affordable housing for their children or keep aging parents close.
Increasing property values. Because of the revitalization of West Adams, properties are appreciating quickly, reducing the risk that the property will decline in value during the flip.
Summary: Is West Adams a Good Place to Invest in Real Estate?
With strong appreciation rates, healthy buyer competition, and ongoing neighborhood revitalization, West Adams is a good place to invest in real estate in the 2020s.
Invest in West Adams Real Estate With Gatsby Investment
Gatsby Investment is a Los Angeles-based real estate investment firm dedicated to providing investors with exclusive opportunities in hot LA markets.
We use the real estate syndication model to make it easy to invest passively in professionally managed projects with strong return potential. Our ever-evolving portfolio includes a variety of investment options, such as the value-add TICs that are performing so well in West Adams.
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