Historic homes are having a moment — not just emotionally, but financially.

Pasadena’s architectural heritage has always been iconic, but in 2024–2025, the market made one thing clear: historic homes are outperforming modern construction across the region.

Let’s break down why.

1. Scarcity Makes Historic Homes More Valuable

Pasadena’s historic districts — Bungalow Heaven, Madison Heights, Orange Heights, and North Pasadena Heights — experienced an average 6.2% appreciation rate over the last 12 months.
Modern construction averaged 2.8%.

Los Feliz and Hancock Park show the same pattern:

• Hancock Park historic estates: +7%

• Los Feliz Spanish + Tudor homes: +6.4%

• Silver Lake vintage Spanish homes: +5.9%

Meanwhile, new construction in these areas averaged 1–3%.

Historic homes can’t be replicated.
They belong to a finite architectural inventory that increases in value as LA grows.

2. Emotional Architecture Wins Holiday Buyers

December buyers are emotional.
They want warmth, charm, character, story.

Historic homes deliver:

• Original hardwood

• Wood-burning fireplaces

• Leaded glass

• Built-ins

• Vintage tile

• Mature landscaping

Modern minimalism doesn’t compete with December sentiment.

3. The Mills Act Advantage (Pasadena + LA)

The Mills Act provides major tax savings for qualifying historic properties.
Some homeowners save 50–70% on property taxes.

This makes historic homes more attractive to:

• Investors

• Creative professionals

• Relocation buyers

• Long-term owners
  

Pasadena remains one of California’s most Mills-Act-friendly cities.

Los Feliz and Hancock Park buyers are taking full advantage too.

4. Architecture + Lifestyle = Appreciation

Buyers today want homes that tell stories.
That’s why Spanish Revivals in West Adams, 1910s bungalows in Highland Park, and 1920s Mediterranean estates in Hancock Park are outperforming new builds.

People are tired of “white box” architecture.

They want soul.

FAQ

Q: Are historic homes more expensive to maintain?
A: Sometimes — but Mills Act savings often offset costs.

Q: Do historic homes appreciate better?
A: Yes — scarcity + architectural value + emotional demand.

Explore historic Pasadena + LA architecture with Jason Bergman – The Agency Pasadena.