Though it does not receive much coverage in the press, people are leaving LA, while investors, often foreign, are snapping up individual homes at outlandish prices in order to rent them out at fancy new rents, or as a place to park their money safely, as contrasted with their home countries where safety may be debatable.
Apartment buildings are going up in Los Angeles, but rents are high and the pace at which they are going up is not sufficient to take care of the demand. The locals who sell and move out do so because they find the rising cost of housing increasingly financially unmanageable. See Want to Live in Orange County? It’ll Cost You $1,848 a Month for an Apartment – an All-Time Average High, Orange County Register, July 15, 2015. For another recent article dealing with this problem, see http://www.laweekly.com/news/