- After holding fairly steady in the first half of the year, conditions in the Los Angeles multifamily market cooled in the second half. As the economy gains momentum, renter demand should pick up and absorption of area apartments should accelerate.
- Apartment vacancy in Los Angeles rose 70 basis points in 2020, reaching 4.5 percent. Most of the increase occurred in the fourth quarter when the vacancy rate surged 40 basis points.
- Apartment rents in Los Angeles recorded their first annual decline since 2009. In 2020, local asking rents retreated 5.2 percent, finishing the year at $1,973 per month.
- Transaction activity in the fourth quarter closely tracked levels from the previous quarter. There was a sharp increase in the sales of larger properties at the end of the year. Prices rose and cap rates compressed in 2020.