The metro area of Los Angeles covers a lot of territory both physically and culturally. It contains some of the most luxurious and expensive neighborhoods anywhere, but also has large communities of houses that sell at much lower price points.
In the buying frenzy of the mid-2000s, median home prices were bid up to a peak of about $530,000 by 2007. At that point, families earning a typical income could afford a mere 2% or so of the homes on the market.
The 44% drop in the median home price since the housing bust has significantly boosted affordability in the area.
