Los Angeles real estate vs inflation: did it beat the dollar?
157% × 46%
Updated June 1, 2026 · Redfin · BLS / FRED (CPIAUCNS)
Since 2013, Los Angeles real estate is up 157% while U.S. consumer prices rose 46%. Los Angeles real estate far outpaced inflation — but the ride was brutal: its worst drop was 14%. Figures in U.S. dollars.
Base 100 since 2013
Why compare Los Angeles home prices (US$/m²) and U.S. inflation (CPI-U)
Los Angeles is a large, expensive coastal market spread across a sprawling metro, where entertainment, trade through its ports, aerospace and a broad service economy support demand, and chronic supply constraints keep prices high. As one of the markets at the center of the mid-2000s boom, it ran up sharply and then fell hard in the 2008 housing crash, with a slow recovery through the 2010s. Prices vary enormously by neighborhood and proximity to the coast, so a single metro figure smooths over a famously fragmented patchwork of local submarkets.
Returns by window
| Window | Los Angeles home prices (US$/m²) | U.S. inflation (CPI-U) |
|---|---|---|
| 1 year | -4% | 4% |
| 5 years | 8% | 24% |
| 10 years | 60% | 39% |
| since 2013 | 157% | 46% |
The price of return: risk
| Asset | Annual volatility | Worst drop |
|---|---|---|
| Los Angeles real estate | 8% | -14% |
| Inflation (CPI) | 1% | -2% |
$10,000 in each, since 2013
| Asset | Value today |
|---|---|
| Los Angeles real estate | $25,725 |
| Inflation (CPI) | $14,553 |
Frequently asked questions
Did Los Angeles real estate beat inflation?
Over the period, Los Angeles real estate returned 157% while U.S. consumer prices rose 46%. The gap is what the asset earned beyond simply keeping pace with the dollar.
Does this account for the dollar losing value?
Yes. The inflation line is U.S. CPI, the measure of how much purchasing power the dollar lost over the same period. Returns above that line are gains in real terms.
Does a higher return mean a better investment?
Not on its own. A higher return came with higher risk here — the volatility and the largest drop on this page show how much the value swung along the way.
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Descriptive, educational content computed from official public data. Not investment advice. Past performance does not guarantee future results.