1031 Exchange in Los Angeles-Long Beach-Anaheim MSA
The Los Angeles MSA offers diverse 1031 exchange opportunities across multiple counties with varying tax rates, strong rental markets, and significant appreciation potential in key submarkets.
Population
13.2 million
Key Industries
Entertainment, Technology, Healthcare
Table of Contents
Information is for educational purposes only. Consult qualified professionals for specific advice.
Local Tax Considerations
Property taxes, transfer taxes, and local incentives
Property Tax Rates
Average Rate
0.75% - 1.25%
Assessment Method
Assessed Value (Prop 13 limited)
MSA rate (0.85%) vs State average (0.73%)
+16.4% above state average
Transfer Taxes & Fees
Transfer Tax Rate
$1.10 per $1,000
Split between buyer and seller varies by custom
Local Tax Incentives
Mills Act Historical Property
Property tax reduction for qualified historical properties
Eligibility: Properties designated as historical landmarks
Seismic Retrofit Property Tax Exclusion
Excludes seismic retrofitting improvements from reassessment
Eligibility: Properties undergoing approved seismic upgrades
Opportunity Zones
Number of Zones
274
Key Locations
- Downtown LA
- Long Beach
- South LA
Opportunity Zones offer significant tax benefits for long-term investments, including deferral and potential elimination of capital gains taxes.
Exchange Timeline Calculator
Plan your exchange with local market considerations
Enter the closing date of your relinquished property to calculate your 1031 exchange deadlines:
Market Profile Dashboard
Economic indicators and market trends
Population
13.2 million
Growth: +0.5% annually
Median Income
$77,456
Unemployment
4.6%
Job Growth
+1.8% annually
Economic Drivers
Market Trends
Median Home Price
$825,000
Average Rent
$2,850/mo
Cap Rates
4.5% - 5.5%
Demographics
Median Age
36.7 years
Bachelor's Degree+
34.5%
Owner Occupied
48.2%
Property Type Analysis
Investment opportunities by asset class
Multifamily
Largest asset class with diverse opportunities
Market Metrics
- Cap Rates: 4.8%
- Vacancy Trends: 4.2%
- Demand Forecast: Strong demographic tailwinds support continued rent growth (+3.5% annually)
Risk Factors
- Rent control ordinances in some cities
- Rising insurance and maintenance costs
Opportunities
- High demand in transit-oriented developments
- Value-add repositioning in older stock
Industrial
Benefiting from e-commerce and proximity to ports
Market Metrics
- Cap Rates: 4.2%
- Vacancy Trends: 2.1%
- Demand Forecast: Limited supply and strong demand driving exceptional performance (+5.8% annually)
Risk Factors
- Supply chain disruptions
- Rising construction costs
Opportunities
- Proximity to major ports
- Growth in e-commerce logistics
Neighborhood Spotlights
Up-and-coming areas and investment hotspots
Downtown Los Angeles
Urban core experiencing significant redevelopment and investment
Investment Thesis
Strong rental demand from young professionals, ongoing infrastructure improvements, and growing tech presence make DTLA attractive for multifamily and mixed-use investments.
Median Price
$650,000
Price Growth
+7.2% YoY
Rental Yield
5.2%
Days on Market
21 days
Key Highlights
Development Pipeline
Over 10,000 residential units in various stages of development, including adaptive reuse projects
Santa Monica
Premium coastal market with limited supply and high demand
Investment Thesis
Trophy location with constrained supply, strong tenant base, and consistent appreciation despite high entry costs.
Median Price
$1,450,000
Price Growth
+4.1% YoY
Rental Yield
3.8%
Days on Market
18 days
Key Highlights
Development Pipeline
Limited new development due to regulations, focus on repositioning existing assets
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Compare Markets
See how this MSA stacks up against others
Compare Markets
| Metric | Los Angeles-Long Beach-Anaheim (Current) | San Francisco-Oakland-Hayward | San Diego-Carlsbad | Riverside-San Bernardino-Ontario |
|---|---|---|---|---|
| Population | 4.0M | 4.0M | 4.0M | 4.0M |
| Median Property Price | $750K | $750K | $750K | $750K |
| Average Cap Rate | 5.2% | 5.2% | 5.2% | 5.2% |
| Job Growth Rate | 2.1% | 2.1% | 2.1% | 2.1% |
| Rental Yield | 4.8% | 4.8% | 4.8% | 4.8% |
| Days on Market | 25 | 25 | 25 | 25 |
Frequently Asked Questions
Common questions about Los Angeles-Long Beach-Anaheim 1031 exchanges
Property taxes are based on the purchase price plus annual increases capped at 2% under Proposition 13. The tax is reassessed to market value upon sale, making timing important for 1031 exchanges.
Yes, several cities including Los Angeles, Santa Monica, and Beverly Hills have rent control ordinances that can impact investment returns. Research local regulations before investing.
Popular areas include Downtown LA for growth potential, West LA for stability, and emerging markets like the Arts District and South Bay for value opportunities.