As the year winds down, it’s time to reflect on how the South Bay’s local real estate performed throughout 2025.
Looking back at annual trends not only helps us understand where we’ve been, but also offers a glimpse of where we might be headed. In this post, I’m breaking down the five standout submarkets of the year, as well as the five that underperformed.
These insights are based on a rolling 12-month comparison of median prices in November 2025 versus the same period ending in November 2024. To close out the post, I’ll also include a full list of Beach Cities and Palos Verdes Peninsula submarkets, along with citywide performance (based on zip code), so you can see appreciation, or depreciation, in a more holistic way.
Let’s dive into the results, and what they might mean as we enter 2026.
Top Performing Submarkets of 2025
- Manhattan Beach Mira Costa: +25.5%
- Manhattan Village: +25.1%
- Hermosa Beach Sand Section: +22.1%
- Manhattan Beach Hill Section: +17.7%
- Malaga Cove (PVE): +16.7%
The 2025 numbers made one thing clear: Manhattan Beach is still the powerhouse of the South Bay.
East Manhattan Beach’s Mira Costa submarket takes the #1 spot with over 25% appreciation on the year. What’s even more impressive is that Mira Costa finished as the second best performing submarket in 2024 with 26% growth. That is simply amazing.
While true apples-to-apples properties haven’t appreciated by over 50% in just two years, what has changed is the volume and velocity of new construction entering the market. And notably, these new construction sales just seem to keep climbing higher and higher.
There is no guarantee that these results will continue for Mira Costa, but one thing is for sure, it has been a blessed two years for this submarket.
Manhattan Village made the bottom performers in 2024 with 12.5% depreciation on the year, but it bucked the trend in 2025 with 25% growth.
It might be easy to assume that its growth is due to easy comps, and there could be some truth to that, but when looking at the full picture, Manhattan Beach has few affordable options and “The Village” fills that affordable need. The submarket offers gated communities, functional townhomes and homes, all at an incredibly affordable price for Manhattan Beach.
Hermosa’s Sand Section also came back to life in a big way, reminding everyone that proximity to the ocean continues to command premium demand. This submarket also made the bottom five last year with 5.8% depreciation.
Thanks to its relative affordability compared to Manhattan Beach, and likely boosted by demand from fire-displaced buyers out of Pacific Palisades, Hermosa’s Sand Section landed as the third-best performing submarket of the year.
The Hill Section continued its unstoppably strong momentum. This submarket finished in the top spot of 2024 with 35.9% growth and took fourth place with over 17% appreciation.
In all, the Hill Section has so much high-end off-market activity that the numbers could be even better if the off-market sales were accounted for in the calculations. The growth here is remarkable as well.
Palos Verdes Estates’ Malaga Cove rounded out the top five with a 16.7% pop, reflecting a broader shift toward coastal living with character, views, and quieter streets.
The Worst Performing Submarkets of 2025
- Rolling Hills: -22.9%
- Monte Malaga: -14.0%
- Palos Verdes Drive South: -13.4%
- Valmonte: -10.8%
- Manhattan Beach Sand Section: -10.4%
Following a year where the market was split between good and bad property numbers, it’s (unfortunately) necessary to highlight the bottom five performers.
The only repeat on the bottom five list from last year is the PV Dr South submarket, likely fighting continued headwinds from the landslides that bogged down the market over recent years. This area is now down a combined 25% over the past two years.
Meanwhile, Manhattan Beach’s Sand Section, usually a pillar of strength, saw a double-digit drop, which may reflect buyer fatigue at the very top of the price spectrum as Sand Section prices are the steepest in all of the South Bay.
In fourth place, Valmonte dropped 10.8%. Last year, it almost cracked the top five with 15.5%, so perhaps this is a reset coming off of difficult comps, but no doubt the Valmonte market is slower in 2025.
Continuing poor PVE performance, Monte Malaga dropped by 14%, a disappointing result for an area known for expensive home prices.
And last but not least (pun intended), behind the gates in Rolling Hills landed at the bottom of the list with a steep 22.9% drop in prices. In this post-Covid, high-rate era, sprawling estates with long commutes and lofty price tags just aren’t topping buyers’ wish lists.
How Each Zip Code Performed in 2025
90266: UP +11.7% (Manhattan Beach)
90254: UP +7.1% (Hermosa Beach)
90278: UP +10.0% (North Redondo)
90277: UP +3.3% (South Redondo, some Hollywood Riviera)
90275: UP +0.7% (Rancho Palos Verdes)
90274: DOWN -5.9% (PVE, RH, RHE, and PVP)
Looking at how markets performed by zip code, the results are clear: the Beach Cities had a great year and the Palos Verde Peninsula is struggling.
All Submarket Performance
If you were disappointed to not see your neighborhood submarket in the top five or bottom five, well, we do not want to leave you out!
Below you will find a full list of all the Beach City and Palos Verdes submarkets from one to 34. It is a lot, but for us real estate data nerds, it is a fun list to study.
- Manhattan Bch Mira Costa: +25.5%
- Manhattan Village: +25.1%
- Hermosa Bch Sand: +22.1%
- Manhattan Bch Hill: +17.7%
- Malaga Cove: +16.7%
- S Redondo Bch W of PCH: +8.6%
- Hollywood Riviera: +7.4%
- Country Club: +7.0%
- N Redondo Bch/Villas North: +6.8%
- Eastview/RPV: +6.6%
- PV Dr North: +5.7%
- N Redondo Bch/Villas South: +5.0%
- Manhattan Bch Tree: +4.6%
- Hermosa Bch Valley: +4.0%
- N Redondo Bch/El Nido: +4.0%
- Silver Spur: +3.4%
- Manhattan Bch Heights/Lib Vlg: +3.4%
- S Redondo Bch S of Torrance Bl: +3.0%
- West Palos Verdes: +0.2%
- Hermosa Bch East: 0.0%
- S Redondo Bch N of Torrance Bl: -0.5%
- N Redondo Bch/Golden Hills: -0.6%
- Mira Catalina: -1.7%
- Peninsula Center: -2.1%
- Los Verdes: -4.1%
- La Cresta: -4.3%
- PV Dr East: -7.5%
- Lunada Bay/Margate: -8.9%
- Crest: -10.0%
- Manhattan Bch Sand: -10.4%
- Valmonte: -10.8%
- PV Dr South: -13.4%
- Monte Malaga: -14.0%
- Rolling Hills: -22.9%
Out of these 34 submarkets, 19 saw growth, one was flat at 0%, and 14 experienced price declines.
Last year, over half saw prices increase over 5% while the previous year (2023), 28 out of 34 submarkets saw growth. So this year as a whole was definitely a slow-down.
Final Thoughts
The 2025 data tells a story of contrast: the Beach Cities surged ahead, while many submarkets on the Palos Verdes Peninsula struggled to keep pace. Manhattan Beach, in particular, reaffirmed its dominance with standout performances across multiple neighborhoods, including Mira Costa’s back-to-back wins.
On the flip side, high-end and hillside markets showed signs of stress, whether due to affordability pressures, lifestyle shifts, or lingering environmental concerns.
While some areas are clearly gaining momentum, others may need time to reset. As we turn the page into 2026, we can expect some submarkets to keep riding the wave, while others may need time to find their footing. No matter where the market heads next, keeping a close eye on the data will be key to staying ahead.
Richard Haynes
DRE: 01779425
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The Richard Haynes Real Estate ShowA leader in South Bay real estate for the better part of a decade, Richard thrives as an advisor to his clients with over $248 million in sales as a broker or investment principal at his boutique agency, Haynes. Richard is known for his keen local market insights which have been featured in the L.A. Times, The Street, and Forbes, along with his weekly South Bay real estate blog. [read more]