What $1 Million Actually Gets You in the San Fernando Valley
If you've been house hunting around Los Angeles, you've probably noticed that a million dollars doesn't stretch the way it used to. It also varies drastically by neighborhood. The exact same budget can put you in a fixer-upper, a brand new townhome, or a full house with a yard, depending entirely on which pocket of the Valley you're looking in.
I get asked some version of "what can I actually get for a million dollars" every week, so let's walk through it neighborhood by neighborhood, because the answer changes a lot depending on where you point that budget. We won’t have time to cover all of them today, but these are the areas I’m most frequently asked about.
Sherman Oaks and Studio City
You’re paying for the address.
These two get lumped together a lot, and for good reason. They're walkable, central, close to the studios, close to the good restaurants, and not that far from LA proper. The demand in these areas is seen directly in the price of dirt.
At a million dollars here, you're usually looking at a nice townhome or a condo. A single family home is very unlikely…although this one has been on the market for a long time, and I think the right person would love it. But generally, even a total tear-down is still going to list north of a million because that’s just what the land is worth. In these neighborhoods, the lot alone often carries the majority of the value, so you're paying premium prices whether the structure on top is move-in ready or falling apart.
If being in Sherman Oaks or Studio City specifically matters to you, and a townhome or condo works for your lifestyle, a million dollars can absolutely get you in the door. Just go in knowing you're buying location first and square footage second.
Valley Glen and Burbank:
A real house, with some sweat equity.
Move a little further out and the math shifts in your favor. In Valley Glen or Burbank, a million dollars can get you a single family home. In Burbank, it’s likely going to be a very small footprint home (think under 1,000 sf), once you break into an 1,100 sf+ bracket, the budget usually starts to push over $1M. In the Glen, it will probably be modest and need some work. Think a house with a particularly small footprint, or maybe a kitchen that hasn't been touched since the 90s. But you're getting a house with a yard, and no shared walls.
These areas are strong options if you're comfortable putting in some sweat equity, or if you'd rather spend on renovations over time than pay a premium for a place that's already polished. Both areas have pockets that give you that classic Valley feel: tree lined streets, good access to the freeways, and a sense of neighborhood.
Lake Balboa:
My favorite pick for buyers watching their budget
If I'm being straightforward with a client working with a budget under a million, Lake Balboa is almost always comes up as an option. It doesn't get the name recognition that Sherman Oaks or Studio City does, and that's exactly why the prices are still attainable.
It's a lovely, green neighborhood, and it sits right next to the Sepulveda Basin, which I like to call the Central Park of the Valley. You've got hiking and biking trails, a lake, open green space, sports fields, all of it minutes from your front door. For a buyer who wants space to breathe without paying Sherman Oaks prices, Lake Balboa consistently delivers beautiful homes at prices that make sense.
West Valley:
Pretty much the same, with a bit more space
The West Valley operates much like neighborhoods east of the 405: the closer you are to the Hollywood Hills, the less likely you are to find a single family home under $1M. However you tend to get a bit more square footage for your dollar in the West Valley.
In Encino and Tarzana, you’re more in townhome condo territory. Reseda and Winnetka consistently have a ton of inventory for this budget. My clients actually just got a 2,600 SF home under a million in Reseda. In Woodland Hills, you can occasionally find a budget gem, however prices have changed a lot in the last couple of years, so $1M is getting you less and less today. West Hills is having a heyday…I’d compare it to Burbank, but you’re likely to get a bit more house for your budget than you’d get in Burbank.
So where should you buy?
If your budget is sitting right around a million dollars, the neighborhood you choose changes what that number gets you more than almost anything else. Want the name and the walkability of Sherman Oaks or Studio City? Be ready for a townhome or condo. Want a real house you can slowly make your own? Expand your search outward.
There's no wrong answer here, just a question of what you're actually optimizing for. If you want to talk through which of these fits your specific situation, schedule a strategy session with me. I will shoot you straight if what you’re looking for is realistic for your budget.
Until next time,
Dana
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