Los Angeles Q3 Multifamily Market Insights: Vacancy tightens for fifth consecutive quarter
Highlights:
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- The Los Angeles multifamily market continued to post a healthy performance during the third quarter. Local vacancy tightened again in the last three months while asking rents throughout the county crept higher at a modest rate.
- Local vacancy continued to inch lower in recent months, dipping 10 basis points during the third quarter to 3.5 percent. Year over year, vacancy is down 60 basis points. Vacancy has declined in each of the last five quarters.
- Following steep increases, the pace of rent growth slowed in the last three months. Asking rents rose less than 1 percent during the third quarter to $2,358 per month. Year over year, rents are up nearly 12 percent.
- While the pace of deals slowed in the third quarter, sales prices remain elevated. The median sales price to this point in the year is $330,800 per unit, up 14 percent from the median price in 2021. Cap rates inched higher in recent months, with most properties trading between 4 percent and 4.5 percent during the third quarter.
