Los Angeles, long synonymous with the global film and television industry, is witnessing a profound transformation in its role as the preeminent production hub. Data and industry observations reveal a significant decline in the proportion of American films and shows being filmed within the city, leading to substantial effects on the local economy, particularly the housing market.
According to recent assessments, only approximately one in five American films and television programs are now filmed in Los Angeles. This represents a dramatic shift from historical norms. An anonymous executive, cited in a report by Realtor.com, starkly characterized the situation, stating it feels “like a Rust Belt crater,” referencing the economic downturn experienced in regions traditionally reliant on manufacturing.
Understanding the Drivers of Change
The migration of production activity away from Los Angeles is attributed to a confluence of challenging factors. The lingering impacts of the COVID-19 pandemic disrupted traditional production models and locations. Coupled with the increasing frequency and severity of wildfires in California, operational complexities and risks for productions have escalated. Furthermore, recent and past worker strikes within the industry have caused significant interruptions and uncertainty.
Beyond local factors, broader industry shifts, such as the decrease in traditional movie theater attendance, have influenced how and where content is produced. Crucially, other states and countries have become increasingly aggressive in offering attractive tax incentives and production rebates, effectively lowering the cost of filming outside of California. These incentives have proven highly effective in luring productions away from their historical center.
The Industry Exodus and Relocation Trends
The consequence of fewer productions filming in Los Angeles is a ripple effect throughout the industry workforce. Film crews, technicians, writers, actors, and executives are increasingly finding work opportunities outside of Southern California. This shift is prompting many industry professionals, including notable figures, to reconsider their primary residences.
Reports indicate that several well-known celebrities have reportedly relocated away from California in recent years. This list includes actors such as Mark Wahlberg, Chris Evans, Matthew McConaughey, Glenn Powell, and Rachel McAdams. Their decisions, often driven by where the work is located or lifestyle preferences influenced by the changing industry landscape, mirror a broader trend among those whose livelihoods depend on film and TV production.
Impact on the Los Angeles Housing Market
The relocation of industry workers and high-profile individuals is having a discernible negative impact on the Los Angeles-area real estate market. As residents tied to the entertainment industry explore opportunities elsewhere, their demand for housing in Los Angeles diminishes.
Evidence of this trend is quantifiable. According to data from Realtor.com in June 2025, a significant 38.1% of home shoppers based in Los Angeles were actively searching for properties in states outside of California. This percentage underscores a substantial intent among LA residents, many presumed to be linked to the entertainment sector, to potentially move.
The data further identifies the most popular out-of-state markets attracting these LA-based buyers, based on property viewings on the platform. These include Las Vegas, Nevada, which accounted for 2.8% of out-of-state views from LA shoppers; Phoenix, Arizona, at 1.7%; Dallas, Texas, at 1.05%; Portland, Oregon, at 0.98%; and Lake Havasu, Arizona, at 0.9%. These destinations often offer lower costs of living, different tax environments, and growing local film production infrastructure in some cases.
Shifting Residency Patterns and Future Implications
Southern California real estate agent TJ Convertino has observed a changing pattern in how creative professionals are managing their residences. Convertino notes that many are “diversifying their residences,” maintaining a property in Los Angeles but establishing their primary homes and roots elsewhere. This often means that second homes previously purchased outside the state are now becoming primary residences.
Convertino attributes this shift, in part, to the strategy of streaming platforms, which are increasingly opting to film their productions outside of California to take advantage of the incentives and potentially lower costs available elsewhere. As production becomes more geographically dispersed, the necessity and practicality of having a primary residence in Los Angeles diminish for many industry professionals.
The changing dynamics signal a critical juncture for Los Angeles. While the city retains its historical significance and substantial infrastructure, the economic forces driving film and television production towards other locales are creating tangible effects, notably reshaping its residential real estate landscape. The long-term implications for both the city’s economy and the character of its entertainment industry remain a subject of ongoing observation and analysis.
