Eliza Theiss 
Key Takeaways:
- Beverly Hills Flats becomes the #1 most expensive neighborhood in L.A. area
- Trousdale takes #2 spot with a median price of $6.3M
- Hill Section registers 88.5% y-o-y median price growth
- 8 neighborhoods posted medians above $3M
While noticeably cooler than the first half of 2018 and Q3 2017, the top of the L.A. area’s real estate market is still going strong. Three neighborhoods posted median sale prices above the $5 million mark in Q3 2018 and a total of 8 neighborhoods’ medians surpassed the $3 million threshold.
Comparatively, only three NYC neighborhoods passed the $3 million mark in Q3 2018 and none came close to a $5 million median sale price. The L.A. area’s top 20 most expensive neighborhoods are overall twice as pricey as NYC’s 20 most expensive.
Analyzing Los Angeles and nearby cities close to the waterfront like Malibu, Santa Monica and Manhattan Beach, we found that although eight neighborhoods out of the L.A. area’s 20 most expensive saw median sale prices trend downward year-over-year – some by more than 40% – most of the area’s priciest neighborhoods saw medians increase compared to year-ago figures.
Hover your cursor over each neighborhood boundary to explore the median home price recorded in the first half of 2018. You can also zoom in or out to better visualize small neighborhoods.
Beverly Hills Flats leader of L.A. area medians as Beverly Hills Gateway tumbles
Despite a 4% year-over-year price contraction, Beverly Hills Flats ranks as the #1 most expensive neighborhood in the L.A. area in Q3 with a median sale price of $7,425,000. Ranked third priciest in Q3 2017, Beverly Hills Flats nevertheless took the top spot as Beverly Hills Gateway saw its median halved.
Ranking as the #3 most expensive neighborhood in the L.A. area, Beverly Hills Gateway slid from last year’s top position after its median sale price contracted by 49.6%. Ending Q3 2018 with a median of $5.7 million, this neighborhood’s fall from grace came as a result of significantly lower-priced transactions than in Q3 2017. In fact, 9 out of the 11 sales registered here in Q3 2018 were lower-priced than its year-ago median of $11.3 million. The most expensive transaction registered here in the third quarter was the $33.1 million sale of 1105 San Ysydro Drive, a lush mansion previously owned by David and Victoria Beckham.
Trousdale Estates takes second-priciest spot after year-ago absence
Undeniably one of the most expensive neighborhoods in the L.A. area, Trousdale Estates ranks as the #2 most expensive neighborhood in Q3 with a median sale price of $6.3 million. Between June 30th and September 30th, 2018, the pricey Beverly Hills neighborhood registered seven sales, six of which were below the $7 million mark. By comparison, the exclusive neighborhood technically had a median sale price of $11,625,000 million a year ago, but registered only three sales, thus it didn’t pass our minimum threshold of five sales.
Hill Section, Malibu West and Bel Air lead y-o-y median price growth
Thanks to a whopping 88.5% year-over-year expansion, Hill Section in Manhattan Beach became the uncontested leader of median price growth. Ranking fourth among the most expensive neighborhoods in the L.A. area, Hill Section posted a $3,950,000 median sale price, climbing 13 positions compared to year-ago rankings. This is a result of Hill Section closing 70% of its transactions in Q3 2018 above $3 million.
Bel Air’s median expanded by 27% year-over-year, hitting $3.25 million in Q3 of this year, thanks to a relatively stable number of high-priced sales, while overall sales decreased year-over year. In Malibu West sales remained flat. However, the homes traded in Q3 2018 were significantly pricier. In fact, only 20% of sales in Q3 2018 were priced below $2 million, while the same period last year saw only 20% of transactions priced above that threshold.
Malibu Sees Quarter’s Priciest Sale Again
As far as the most expensive home for sale is concerned, the priciest transaction closed at $48,750,000 in Q3 2018. Located at 26848 Pacific Coast Highway, Malibu, the over 12,000-square-foot mansion was developed in the early 2000s by real estate mogul Richard Weintraub and Tasty Brand co-founder wife Liane Weintraub.
Known as La Villa Contenta, the 8-acre estate has plenty of claim to fame, having appeared in hit TV series True Blood and having acted as the temporary home of Beyoncé and Jay-Z. Interestingly enough, Q3 2017’s priciest sale in the L.A. area was also tied to the music moguls – 454 Cuesta Way in Bel Air was purchased by the megastars for a cool $88 million, making it the #7 most expensive home to ever sell in California.
| # | City | Neighborhood | Median Sale Price Q3 2018 | Y-o-Y Change | Transactions |
|---|---|---|---|---|---|
| 1 | Beverly Hills | Beverly Hills Flats | $7,425,000 | -4% | 9 |
| 2 | Beverly Hills | Trousdale | $6,300,000 | #N/A | 7 |
| 3 | Beverly Hills | Beverly Hills Gateway | $5,700,000 | -49.6% | 11 |
| 4 | Manhattan Beach | Hill Section | $3,950,000 | 88.5% | 13 |
| 5 | Santa Monica | North of Montana | $3,940,000 | 12.3% | 23 |
| 6 | Los Angeles | Bel Air | $3,255,000 | 26.9% | 32 |
| 7 | Malibu | Point Dume | $3,155,000 | -37.2% | 9 |
| 8 | Manhattan Beach | Sand Section | $3,000,000 | 6% | 33 |
| 9 | Malibu | Big Rock Mesa | $2,850,000 | #N/A | 6 |
| 10 | Los Angeles | Windsor Square | $2,555,000 | 2.3% | 20 |
| 11 | Los Angeles | Pacific Palisades | $2,550,000 | -15% | 82 |
| 12 | Manhattan Beach | Tree Section | $2,539,500 | -3.8% | 30 |
| 13 | Malibu | Malibu Park | $2,520,000 | -40% | 10 |
| 14 | Los Angeles | Cheviot Hills | $2,450,000 | 27.1% | 33 |
| 15 | Los Angeles | Beverly Crest | $2,350,000 | 10.3% | 60 |
| 16 | Malibu | Broad Beach | $2,300,000 | -41% | 7 |
| 17 | Malibu | Malibu West | $2,250,000 | 40.6% | 5 |
| 18 | Los Angeles | Brentwood | $2,150,000 | 25.4% | 129 |
| 19 | Los Angeles | Hancock Park | $2,140,000 | 6.5% | 34 |
| 20 | Los Angeles | Hollywood Hills West | $2,090,000 | 17.4% | 105 |
Methodology:
To determine the most expensive neighborhoods in the L.A. area, we looked at all residential transactions that closed between July 1st, 2018 and September 30th, 2018, for single- and two-family houses. All package deals were excluded. To provide an accurate picture of real estate prices, we only included neighborhoods with a minimum of 5 transactions into our ranking. However, medians for neighborhoods with fewer than 5 sales are available on our interactive map.
We defined the L.A. area as the City of Los Angeles, Malibu, Santa Monica, Topanga, El Segundo, Manhattan Beach, Hermosa Beach, Redondo Beach, Torrance, Palos Verdes Estates, Rancho Palos Verdes, Long Beach, Beverly Hills, West Hollywood, Culver City, Inglewood, Rolling Hills, Rolling Hills Estates, Lomita, Lawndale and Hawthorne.
Data on small neighborhoods has been incorporated into statistics for larger areas. As such, Malibu Road and Malibu Beach Colony are treated as one neighborhood, while Roxbury Park, Doheny South East, Doheny South West, Burton North, Burton South, Beverly Hills South East, Beverly Hills Heights, Golden Triangle and La Cienega Park were incorporated into South of Santa Monica Boulevard.
