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LA's Luxury Home Market Being Left in the Dust by NYC

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A report also finds wealthy Angelenos gravitating towards luxury high-rises

Add the luxury housing market to the list of things LA and New York City can feud about. Coldwell Banker has released its spring report on the luxury housing market (via LA Weekly), and New York is winning the hearts of wealthy homebuyers. New York City is outpacing Los Angeles in the number of luxury homes listed and sold, both by a rather large margin.

In 2015, New York City saw 211 homes valued at $10 million or more sell, compared to LA's 32. Even adding Beverly Hills home sales to that total only boosts the number up to 70 LA homes valued at $10 million or more selling in 2015. Even looking at homes starting at the more reasonable (but still outrageous) price of $1 million, Los Angeles falls way behind New York in terms of sales. 2,776 homes valued at $1 million or greater sold in Los Angeles last year—not even half of the 7,445 $1-million-plus homes sold in New York.

It might simply be due to the fact that there are so many more luxury homes available in the New York City area. As of February 2016, New York City has 3,662 homes valued at $1 million or more actively listed on the housing market. LA's total active listings in the same category is just 985. Not only is that far behind New York City, it's also fifth in the nation, behind Miami, Miami Beach, and Naples in Florida, and Park City in Utah.

In the number of active listings of homes valued at $10 million or more, LA is all the way down in seventh place (41 listings) to New York's top spot (425 listings). Although, in this category, some fudging of the numbers starts to move the LA area up the list a bit. If LA's numbers are combined with Beverly Hills, Malibu, and West Hollywood, the number of $10-million-plus homes actively listed in LA County shoots up to 144 active listings. That pushed LA to third place, just behind Miami Beach, Florida (152 listings).

The report also notes that the luxury home market is not limited to McMansions. Despite the wishes of anti-development activists, high-rise luxury penthouses are gaining in popularity among the rich of LA. With their stunning city vistas and over-the-top amenities like drone landing pads and concierge services, luxury high rises are proving to be an enticing alternative to mansion living. The sale of high-rise units in Los Angeles was up 21 percent in 2015, with Coldwell Banker citing a 42nd floor penthouse in Century City that sold for $22.5 million as the zenith of last year's high-rise sales.