Los Angeles Q1 Multifamily Market Insights: Rents surge higher during the first quarter
Highlights:
- Continued vacancy tightening and a recovering employment market fueled rent gains in Los Angeles County at the start of 2022. Rent growth in the first quarter outpaced neighboring Southern California markets and supported continued investment activity and rising per-unit prices.
- The vacancy rate in Los Angeles dipped 10 basis points in the first quarter to 3.9 percent; this is the lowest area vacancy rate since 2019. Year over year, the rate declined by 60 basis points.
- Asking rents climbed in the first quarter, rising 4.7 percent to $2,236 per month. The pace of rent growth is accelerating; during the past 12 months, rents advanced 13.6 percent.
- The multifamily investment market remained active in the first quarter. The median sales price to this point in 2022 reached $341,400 per unit, up 17.5 percent from the median price in 2021. Cap rates averaged around 3.7 percent at the start of the year.
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