Los Angeles 2Q23 Multifamily Market Insights Report: Construction picking up following 2 slow years

Highlights:

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• The Los Angeles multifamily market recorded a mixed performance during the second quarter with vacancy inching higher, while rents rose. Apartment development activity is ramping up with a steady flow of new projects expected to come online in the remainder of the year.
• The local vacancy rate ticked higher during the second quarter, rising 20 basis points to 4%. Year over year, the rate increased by 40 basis points.
• Local asking rents rose 2% during the second quarter to $2,449 per month and are up 4.1% year over year. The strongest rent gains have been recorded in Class B and Class C properties.
• The multifamily investment market cooled in recent months as deal volume fell more than 50% from the first quarter to the second quarter. The median sales price year to date is $303,500 per unit while cap rates were averaging around 4.8%.

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