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.
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