Kanye West sees his California home value drop

Kanye West’s Beverly Hills mansion, purchased for $35 million in October 2024, has dropped to $28.4 million by February 2025, a decline of $6.6 million or 19 percent, reflecting the volatility of California’s housing market.

Why It Matters

This isn’t West’s first brush with real estate loss. In 2021, he purchased a Malibu mansion for $57.3 million, only to sell it in 2024 for $21 million, incurring a staggering $36 million loss. The Malibu property, designed by architect Tadao Ando, was initially a symbol of luxury and architectural innovation. However, West’s extensive renovations, which included gutting the interior, left the property in a dilapidated state, significantly diminishing its market value.

West’s current real estate decline occurs amidst a challenging period for the California housing market. High mortgage rates and escalating housing costs continue to challenge home affordability across the state. The recent Los Angeles wildfires have further exacerbated the situation, causing unprecedented losses and adding pressure to an already strained market.

What To Know

In October 2024, Kanye West purchased a mansion in Beverly Hills, for $35 million. As of February 2025, Zillow’s Zestimate places the property’s value at approximately $28.4 million, indicating a decline of about $6.6 million, approximately 19 percent, in just a few months.

According to Zillow, West’s Beverly Park estate, built in 2000, sits on 6.9 acres and spans 20,000 square feet. It has 11 bedrooms and 18 bathrooms along with luxurious amenities such as a swimming pool, a paddle tennis court, cascading waterfalls and security pavilion.

Not all luxury homes are experiencing such a decline. According to a 2025 Trend Report from Coldwell Banker Global Luxury program, luxury real estate prices have continued to rise, with single-family homes in the luxury market growing by 7.6 percent compared to just 3 percent in the traditional market. The report also highlights that the luxury market has seen a growing demand for indoor-outdoor spaces and multi-generational living arrangements.

This is in contrast to the housing market in general, especially in California, which has experienced a slowdown in sales. According to Redfin data, the median home price in December 2024 reached $801,100, a 5.9 percent increase from the previous year and almost double the median price of homes in the U.S.

According to a report by Rocket.com, the Beverly Hills area has shifted from a seller’s market to a buyer’s market over the past year. This could indicate a potential decrease in demand for high-priced properties in the area.

What People Are Saying

Laura Ratz, senior economist at Moody’s Analytics, previously told Newsweek: “Already, housing completions in CA are further above year-ago levels than in the U.S. overall. The modest decline in rates will entice some buyers back into the market, but persistently low housing affordability will keep many on the sidelines: Mortgage rates need to fall by more than 400 basis points to restore pre-pandemic affordability. As supply rallies, prices will moderate. While demographically driven demand will keep a floor under prices in much of the country, weak population trends in recent years will undercut that support in CA.”

According to the 2025 Trend Report from Coldwell Banker Global Luxury program: “Growth in the luxury housing sector continues to defy broader market trends, outpacing the traditional real estate market. Annual luxury home prices for single-family homes grew by 7.6% twice the rate of the traditional market at 3%. Luxury condo prices grew by 6.5%, compared to 3% in the traditional market.”

Heather Ozur, president of the California Association of Realtors said in a press release: “With mortgage rates remaining at their highest level since early July and devastating wildfires taking a toll on the Southern California housing market, we’ll likely have a slow start for the year, but demand should pick up once we enter the spring homebuying season.”

What Happens Next

High mortgage rates, housing affordability issues and the aftermath of recent wildfires continue to pose significant risks for homeowners. While some segments of the luxury market are flourishing, others, like Kanye West’s properties, underscore the potential volatility within the market.