Los Angeles Multifamily Report – Fall 2021
While lagging inland metros, L.A. is still recovering at a steady pace.
As recovery continues at a relatively steady pace and the multifamily industry remains strong, positive rent movement, although slowly softening nationwide, still persists. As of September, rents in metro Los Angeles appreciated 1.1 percent to $2,328 on a trailing three-month basis, well above the $1,558 U.S. average. Year-over-year, Los Angeles rates increased by 7.2 percent as of September, a welcome improvement among primary markets where growth is still trailing Southeast and Southwest rent expansion.
In the 12 months ending in July, Los Angeles gained 242,900 net jobs, for a 0.2 percent expansion. July marked the first month of year-over-year gains in the market since last March. According to the California Employment Development Department, the state’s monthly job growth in August was three times the national average of 0.2 percent, at 0.6 percent. However, the state had recovered only 62 percent of the 2.7 million jobs it lost in March and April 2020.
Metro Los Angeles had 28,479 units under construction as of September, 83 percent of them aimed at high-income renters. Yardi Matrix expects 11,761 units to come online across the metro this year, surpassing both 2020 deliveries and the 11,203-unit decade high of 2016. Meanwhile, investment sales amounted to nearly $2.8 billion year-to-date through September, more than double the sales volume recorded in the same time frame last year.