Studio City

Studio City: 3-Year Market Projection

2026
• Active Listings: Expected 510–540, as inventory remains elevated relative to recent years.
• Closed Sales: Likely 190–210, holding near 2025 levels with modest absorption.
• Median Prices: Flat-to-slight growth, list ~$2.15M–$2.20M, sold ~$2.10M–$2.15M.
• $/Sq.Ft.: ~$920–$950, stabilizing after the 2022–2025 correction.
• Key Factor: Persistently high interest rates will limit transactional velocity, but values remain supported by Studio City’s central location and family appeal.

2027
• Active Listings: Moderates to 480–500, as fewer speculative sellers test the market.
• Closed Sales: Gradual improvement to 220–230, signaling stronger absorption.
• Median Prices: Renewed appreciation, list ~$2.20M–$2.28M, sold ~$2.15M–$2.22M.
• $/Sq.Ft.: Pushes to ~$950–$980, driven by demand for modernized inventory.
• Key Factor: With potential Fed easing, more buyers re-enter as affordability improves, leading to healthier liquidity.

2028
• Active Listings: Balanced at 460–480, reflecting a tighter and more efficient market.
• Closed Sales: Rising to 240–260, approaching pre-2020 averages.
• Median Prices: Stronger growth, list ~$2.25M–$2.35M, sold ~$2.20M–$2.30M.
• $/Sq.Ft.: Moves toward ~$980–$1,020, consolidating long-term gains.
• Key Factor: Broader economic stabilization and international wealth inflows sustain demand for quality Valley homes.

Summary Projection

• Short-term (2026): Stabilization — high listings but steady pricing.
• Mid-term (2027): Recovery — stronger absorption and modest price growth.
• Long-term (2028): Market rebalances — healthier turnover and prices regaining upward momentum.

Bottom Line: Studio City is emerging from a post-boom correction into a stabilization and modest growth phase. While sales volumes are not likely to reach the 2021–2022 surge, the neighborhood’s desirability and limited new supply will keep values on a gradual upward trajectory.

Download Studio City Data

 Analysis of Studio City (2013–2025)

1. Market Activity: Active Listings & Closed Sales

• 2013–2017: Active listings ranged between 576–657, with closed sales from 333–360, producing steady absorption rates in the low-60% range at peak (2013, 2014).
• 2018–2020: Activity softened — conversion dropped below 50% by 2019, and in 2020 only 218 homes closed out of 525 listings (41.5%), showing weaker liquidity.
• 2021–2022: The post-pandemic boom reignited the market, with closed sales spiking to 332 in 2021 (62.4% absorption).
• 2023–2025: Sales slowed again; by 2025 only 188 homes closed out of 532 listings, with absorption falling to 35.3%, one of the weakest in over a decade.

2. Closure Rate (Absorption)

• 2013–2014: Healthy, with closure rates around 59–62%, reflecting solid buyer demand.
• 2015–2017: Absorption eased into the low-to-mid 50% range, showing more balance but slower turnover.
• 2018–2020: Weak period — rates dropped to 38.9–50.6%, a clear sign of oversupply or buyer hesitation.
• 2021–2022: Strong resurgence, especially in 2021 (62.4%).
• 2025: Declined sharply to 35.3%, indicating buyers are selective and liquidity has thinned.

3. Pricing Trends: Median List vs. Median Sold

• 2013–2017: Prices rose steadily from a median sold of $975K to $1.38M, closely tracking list prices.
• 2018–2020: Continued appreciation, with median sold reaching $1.84M in 2020, despite weak absorption.
• 2021–2022: Price momentum accelerated — sold medians surpassed list prices, peaking at $2.16M sold vs. $2.00M list in 2022, showing multiple offers and bidding wars.
• 2023–2025: Prices remained elevated ($2.09M–$2.19M), but the gap between list and sold widened again as sales slowed.

4. Total Sold Volume

• 2013–2017: Volumes grew steadily from $414M (2013) to $550M (2017).
• 2018–2020: Stayed near $450M–$503M despite fewer sales, as higher prices offset weaker activity.
• 2021: Surged to a record $759M, reflecting both high demand and higher values.
• 2022: Held strong at $600M.
• 2023–2025: Declined to ~$460M annually, reflecting sluggish absorption despite historically high pricing.

5. Value Per Square Foot

• 2013: Averaged $479/Sq.Ft.
• 2017: Crossed the $635/Sq.Ft. mark.
• 2021: Surpassed $800/Sq.Ft., reflecting buyer frenzy.
• 2022: Peaked at $918/Sq.Ft., showing the strongest per-foot appreciation in Studio City’s history.
• 2025: Corrected to $915/Sq.Ft., still nearly double 2013 levels, indicating values have stayed resilient despite slower turnover.

6. Sale-to-List Ratios

• Consistently strong, ranging from 97.9% (2025) to 102% (2021–2022).
• 2021–2022: Buyers frequently paid above asking.
• 2025: Fell back under 98%, showing buyers now hold more leverage.

What This Means

• 2013–2017: Balanced growth — prices rose steadily, liquidity was strong.
• 2018–2020: Absorption weakened, but prices climbed due to steady demand for limited inventory.
• 2021–2022: A historic surge — record volumes, tight sale-to-list ratios, and record $/Sq.Ft. appreciation.
• 2023–2025: A cooling phase — volumes and absorption declined, but values remain elevated due to constrained supply.

Bottom Line
Studio City has matured into one of the most desirable Valley luxury markets. While turnover has slowed since the 2021–2022 boom, pricing remains historically high, showing the market has corrected on volume rather than on value. Over the next cycle, expect modest appreciation with continued competition for well-located, updated homes, but longer market times for mid-tier properties.