Vacancies are up in LA’s multifamily market

Rents rise to highest level on record

TRD LOS ANGELES /
May.May 20, 2019 04:00 PM
Multi-family buildings in L.A.
Multi-family buildings in L.A.

The market for multifamily housing in Los Angeles County remained at record levels over the first quarter this year.

But after the county added nearly 3,300 units to the inventory the first three months of the year, the vacancy rate inched up to 3.8 percent, a new report from NAI Capital found.

Landlords have benefited from the historic demand as rents rose to the highest level on record. Average asking rent was $1,861 per unit, up 0.6 percent from the previous quarter, and a 2.7-percent jump since the same period last year, according to Yardi Rent Café.

Market conditions in Los Angeles County have changed dramatically the past year as both investors and developers paused in the face of rising interest rates and construction costs. But NAI Capital reported that the average asking price per unit increased 15.1 percent from the final quarter of 2018, to $258,033.

There are currently 25,627 units under construction and approximately 112,727 units proposed to be built by 2024. However, in the first quarter of 2019, new construction starts fell to a six-year low due to high construction costs, the report found.

These factors indicate that the Los Angeles multifamily housing market is expected to level off in 2019, but it will remain strong as housing demand far outweighs supply, NAI’s report concluded.


Related Articles

arrow_forward_ios
A map of Westlake (Credit: Google Maps and iStock)

Developers are digging into multifamily projects in Westlake

Ken Gladstein in front of 630 Masselin Avenue

Multifamily investor Sares-Regis bets big on Miracle Mile

A multifamily building could replace this auto body shop (Credit: Google Maps)

Bastion plans 139-unit project on doorstep of booming Culver City

From left, clockwise: Daydream Apartments’ Griffin and Grace on Spring, Douglas Emmett’s The Glendon at Westwood and Carlyle Group’s Sofia Los Angeles

Here are LA’s 5 biggest multifamily sales of 2019

Relevant Group’s Richard Heyman and the project site (Credit: Google Maps)

Relevant Group plans 87-unit apartment complex in South LA

A rendering of the project

Developer files plans to build 87-unit apartment complex in Pico Union

A rendering of the project and Douglas Bystry, President and CEO of Clearinghouse

Koreatown resi complex marks firm’s entry into Opportunity Zones

A rendering of the property, Cityview CEO Sean Burton and Virtu Investments principals Michael Green and Scott McWhorter (Credit: LCP 360) 

Virtu pays $71M for Warner Center complex in Opportunity Zone

arrow_forward_ios
Loading...