Los Angeles Q3 Multifamily Market Report: Despite Rent Dip, More Properties Trade at Higher Prices

Highlights:

  • The Los Angeles multifamily market recorded mixed performance during the third quarter. Vacancy ticked higher but remained low and consistent with recent levels. While vacancy is fairly tight, rents posted a sharp decline with the most expensive submarkets generally recording the most significant cuts.
  • Vacancy rose 10 basis points during the third quarter, ticking up to 4.1 percent. The current vacancy rate is 30 basis points higher than the figure one year ago.
  • Local asking rents retreated 2.6 percent to $2,014 per month during the third quarter. The market recorded its first year-over-year decline in nearly a decade; asking rents are 2.9 percent lower than they were one year ago.
  • The investment market gained some momentum in recent months. Activity picked up slightly, and the median price rose. Cap rates held steady and have averaged 4.2 percent this year.

Read the report

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