Los Angeles is officially considered the nation’s most expensive housing market. According to a report released by UCLA Anderson School of Management, three out of six of the country’s most costly cities are in Southern California with LA taking the top spot for both renters and homebuyers.

This is sad news for residents living in the city, since median home prices are already at an all-time high. Potential home owners here need to work that much harder to save for a house. 

The UCLA study predicts housing prices will continue to skyrocket as long as there’s still demand. With the growing amount of construction projects going on throughout Los Angeles, the city may face an excess in housing supply. If this is the case, the costly price of upscale units would fall, ultimately benefitting middle to upper-middle class residents. However, it wouldn’t change much for lower-income residents.

As a result of this yo-yo effect, the study also states that developers may slow down construction on their housing projects, which would decelerate housing growth. Perhaps that never-ending cycle is destined to keep counterbalancing itself for the foreseeable future.