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End to Hollywood strike sparks hope for L.A. home sales

As writers head back to the studios, sales could increase — but not right away

End to Hollywood Strike Sparks Hope for L.A. Home Sales
(Getty)

An end to the Hollywood entertainment strikes could bode well for local real estate.

Pending deals to end the five-month labor stoppage in Los Angeles could boost local home sales, Mansion Global reported, citing real estate experts and landlords.

Although the Writers Guild of America reached an agreement to end its strike on the 146th day on Monday, industry actors continue to strike, and most of Hollywood remains at a standstill.

But that didn’t halt brokers from seeing the potential of back-to-work home buying, despite workers’ finances after the lengthy strike. Some workers have been living out of their cars.

Even with high mortgage rates and a new mansion tax on $5 million-plus homes, an end to the strikes is likely to result in an increase in sales and listings, though not immediately, local experts said. 

“There is the emotional impact of the strikes on the industry and Los Angeles at large,” Greg Holcomb, an L.A. agent with Douglas Elliman, told Mansion Global. “You may not have been out of work, but you may need comfort on an emotional level to resume the search for a home.”

Residents who rely on a rental income from writers and actors to maintain their day-to-day expenses have also been waiting for the strikes to end. 

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David Ambroz, an author who was recognized by President Barack Obama for “A Place Called Home: A Memoir,” owns two condos in a building across the street from Paramount Studios. He lives in one and rents out the other for $4,500 a month. 

“I’ve never had a problem finding a renter, but since the strikes, the condo has sat empty for months and halted my search for a home,” Ambroz said. “I need for the strikes to end, so that writers and actors can get back to work, and I can get back to earning my rental income and start looking for a house again.”

Landlords like Ambroz might have to wait longer than they expect. Holcomb, the Douglas Elliman agent, said an end to the strikes is unlikely to trigger an immediate increase in activity.

“The people who have seen their incomes depleted need six months to a year to build their savings back up,” he said. 

Aaron Kirman, owner of Christie’s International Real Estate AKG in Los Angeles, said he’s more optimistic and there is a collective hope the market will regain some momentum once the strikes are resolved. 

“The entertainment industry plays a pivotal role in driving demand and shaping the dynamics of our real estate market,” Kirman told Mansion Global. “As it re-awakens, we anticipate positive developments that will not only benefit industry professionals but also those engaged in the broader real estate ecosystem.”

— Dana Bartholomew

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