Los Angeles Q4 Multifamily Market Report: Developers to increase activity levels in 2023
Highlights:
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- The Los Angeles multifamily market finished the year on a high note with the vacancy rate holding steady at a four-year low and the pace of rent growth accelerating. Local apartment developers continued to bring new projects online at a healthy pace in 2022.
- Area vacancy was mostly stable from the third quarter to the fourth quarter, as the vacancy rate finished 2022 at 3.5 percent. The rate improved by 50 basis points for the full year.
- Rent growth spiked in 2022; average asking rents in Los Angeles County surged 15 percent in the past year. Gains were strong in the fourth quarter, as rents rose 4.2 percent to $2,456 per month.
- Multifamily transaction activity continued to trend lower during the fourth quarter while pricing remains strong. The median sales price in 2022 was $325,900 per unit, up 12 percent from the median price in 2021. Cap rates averaged approximately 4.25 percent during the fourth quarter.
