Los Angeles Q2 Multifamily Market Report: Vacancy Low, Rents Rising as Development Gains Momentum
Highlights:
- Multifamily properties performed well in Greater Los Angeles during the second quarter. The market benefited from a healthy pace of job growth and a dip in the delivery of new units.
- Vacancy in Los Angeles County held steady at 3.6 percent during the second quarter; the rate is up just 10 basis points year over year.
- Local asking rents closed the first half of the year at $2,043 per month, up 5 percent from one year earlier. Some of the strongest growth is being recorded in Downtown Los Angeles.
- The investment market strengthened in the second quarter with transaction activity ticking up, prices rising, and cap rates compressing. Cap rates have averaged 4.4 percent thus far in 2019, but rates dipped to 4.25 percent during the second quarter.
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