Los Angeles Q1 Multifamily Market Report: Sales Activity Concentrated Around Larger Transactions to Start 2021


  • The Los Angeles multifamily market is returning to normal after a volatile 2020. Businesses are reopening, resulting in an active pace of hiring. Apartment vacancy at the beginning of the year was steady, and rents contracted only a few dollars after sharper declines last year. As the economy strengthens, apartment conditions should improve.
  • Vacancy in Greater Los Angeles was flat during the first quarter, holding steady at 4.5 percent. The rate has increased 50 basis points year over year.
  • Asking rents in Greater Los Angeles ended the first quarter at $1,968 per month, 6 percent lower than one year ago but down only slightly year to date. The most expensive areas of Greater Los Angeles are the submarkets where rents have contracted the most. Meanwhile, rents have largely held steady in more affordable parts of the county.
  • The investment market at the start of 2021 was similar to conditions at the end of last year. Sales velocity declined slightly while prices and cap rates closely tracked 2020 levels.

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