The Surprising Truth About Venice Home Growth: It Wasn’t the Houses

Recently, there is a growing assumption that Venice real estate became expensive because homes got larger, fancier, or more modern. But when you actually dig into the data, a completely different story appears: one that's both surprising and incredibly important for anyone thinking about buying, selling, or building in Venice.

Using MLS records from 1996 through 2025, we looked at three simple questions:

1. Are homes actually getting larger?

2. Did we start adding more bedrooms?

3. Are owners building deeper into their lots over time?

The results tell a very clear story.

Home sizes increased, but nowhere near as fast as prices did

Median Venice home size increased about 60% since the mid-90s.

But median price per square foot increased over 1,200%.

The graph below shows it clearly:

Around 2012, $/SqFt began to “take off,” rising far faster than physical home size. That inflection point lines up with:

• Post-recession Westside tech recovery

• The rise of Silicon Beach

• Limited supply of walkable, coastal neighborhoods

• Investor demand for small-lot, character-heavy pockets like Venice

The key insight: Prices didn’t explode because homes got bigger. They exploded because land value, desirability, and demand exploded.

Venice homes didn’t really gain more bedrooms

Next, we checked whether Venice owners were adding more bedrooms — opening up attics, adding second floors, splitting homes, etc. They weren’t.

Median bedroom count stayed almost completely flat:

For nearly 30 years, Venice has basically been a 3-bedroom neighborhood.Even while prices rose dramatically, the functional layout of a typical Venice home did not change.

This is important: People aren’t paying more because homes provide more utility. They’re paying more because Venice is Venice.

Homes now occupy more of the lot, but not by as much as you’d think

If homes didn’t gain more bedrooms, maybe they expanded deeper into the lots?

Yes, but modestly.

From 1996 to today, median lot coverage grew from roughly 25–30% to 45–50%. That’s a meaningful increase, but still far below what Venice zoning generally allows. Even with soaring home values, owners didn’t suddenly start maxing out their lots. Venice didn’t transform into a neighborhood of overbuilt boxes.

This, again, reinforces the central pattern: The physical product didn’t fundamentally change - the market valuation did.

So what does all this mean for Venice owners and buyers today?

1. Venice price appreciation is structural, not cosmetic

It wasn’t driven by bigger houses, densification, or unit count. It was driven by location, lifestyle, lifestyle demand, and long-term scarcity.

2. The value is overwhelmingly in the land

When $/SqFt grows 12× faster than the houses themselves, land value is the driver.

3. For sellers, this is exactly the kind of data that supports premium pricing

Homes that haven’t added bedrooms or density have still appreciated almost purely due to demand-side pressure — a strong signal for anyone considering timing a sale.

4. For buyers, this suggests strong potential to add value through smart remodels or expansions

If land is the asset, improving the structure often yields disproportionate ROI.

Want more insights like this?

This breakdown is part of a regular data digest I send to Venice and Westside homeowners.

Zero spam, just clean, data-backed insights.