According to Business 2.0 Magazine the Los Angeles Housing Market is one of the 5 bubble proof markets to invest in.  In the article they listed the average home price appreciation over the past 57 years (1949-2006) at 3.7 percent.  That's pretty impressive when you include the massive exodus of people in the late 80's and throughout the 90's.

That means if you bought, lets say a 400,000 condo today and held on to it for 5 years, you would earn roughly 74,000 in equity.

Housing bubble housing smubble.