UNITED STATES—From TV shows and movies to Top 40 songs, Beverly Hills is a city known across the United States and around the world. It has a reputation for housing the rich and the famous and is alluring to those who want to live in luxury and style.
The city has many popular amenities that cater to the affluent, like Rodeo Drive, where the most popular luxury brands have impeccably designed shops, including Burberry, Cartier, Chanel, Gucci, and Louis Vuitton. The drive spans three blocks, feels like a paradise with palm trees lining the roadway, and appeals to A-list stars and artists.
But the shops are just the beginning of what Beverly Hills offers its residents. It has temperate weather year-round, is close to Hollywood and downtown Los Angeles, and much more. Here, we’ll explore the costs of owning a home there and how the city became the hub it is today. We’ll also look at some drawbacks of residing or owning a home there, all to determine whether the benefits outweigh the costs of this sun-filled city.
How Much Do Beverly Hills Homes Cost?
Many of the homes in the city are luxurious mansions, and celebrities like Leonardo DiCaprio, Taylor Swift, Adele, Johnny Depp, and Jennifer Aniston have homes there. With the star power and luxuriousness of Beverly Hills, the homes are, naturally, incredibly expensive. On average, a Beverly Hills home in 2024 is worth $2.6 million, though this is 13% lower than what it cost in 2023.
Buying a home in the city also offers more peace of mind than other parts of Los Angeles, as it has a low flood risk and only a moderate fire risk (other areas have a major risk). The most significant environmental risk in the city is the heat, but with luxury housing, there are ways to stay safe and cool even on the hottest days.
Adding to the value of homes here are the quality of the education system, high-quality city services, fine dining restaurants, and shopping options. Despite this year’s price dip, it is generally considered a sound place to make a real estate investment thanks to its steadily appreciating housing market over the long term.
The city also offers exclusive, gated neighborhoods, making it a haven for the rich and famous who want security and privacy in their own homes.
The majority of home buyers in the area come from other high-cost regions, including other cities in California and New York City. A few have also come from other regions of the US, such as Oregon, Idaho, and Pennsylvania.
How Did Beverly Hills Become an A-Lister Hub?
Beverly Hills hasn’t always been the wealthy place it is today. Its early recorded history tells us it was primarily ranch land for sheep and cattle. As it became more of a residential area, a pair of film stars decided to build a lavish home there, beginning the trend of Hollywood stars setting up residence in the Hills. From then on, it grew to become a place for the famous and wealthy.
What Are the Drawbacks of Owning a Home in Beverly Hills?
While there are plenty of appealing elements about Beverly Hills, there are a few aspects to be aware of before buying a property there. The first is that it has a high cost of living, an unsurprising fact considering the luxurious nature of the area.
Another key consideration is the intense traffic congestion, which can be a significant barrier to daily living and a source of frustration. Beverly Hills also has stringent regulations to maintain the exclusive nature and privacy of gated communities. It’s also a huge tourist draw, with tour buses passing through communities to see celebrity homes or historic sites scattered throughout the area.
These drawbacks can be deal-breakers for home buyers, leading them to look elsewhere. In fact, over 20% of Beverly Hills home buyers are looking to leave the city for another area.
The Verdict: Unless You’re an A-Lister or Incredibly Affluent, Shop Elsewhere
Beverly Hills, while a beautifully maintained place with exciting draws, has many drawbacks that make it best suited for those who need the security measures of gated communities. There are other places in the country where you can enjoy a stunningly stylish home without the traffic, tourists, and generally higher living costs.
If you’re looking for an affordable home, Pittsburgh, Pennsylvania, is the most affordable city in the United States. It has the benefits of a thriving arts and culture scene, an affordable cost of living, an excellent education system, and access to PA online casinos (if that’s your thing).
If you have the budget for a multi-million-dollar home, areas like the Hamptons and Aspen have a wide selection of luxury homes and draws like quick access to outdoor recreation, like hiking, beaches, and skiing. They also have the advantage of being quieter and more private than the Californian hub.
You could even consider other cities within California, such as Sherman Oaks or Malibu, if you want the temperate weather, quality education, and proximity to attractions that Beverly Hills offers.
Conclusion
Beverly Hills properties may be worth the cost for the exceptionally rich and famous, but for others, there are too many drawbacks to make it worth the price. If you’re considering buying a new property, consider looking in other prime real estate locations, and keep Beverly Hills as a place to visit and enjoy in small doses.