Los Angeles Multifamily Report – June 2022
Rents and occupancy are making significant gains.
Los Angeles’ strong performance is likely to continue this year, with most indicators on a positive trajectory going into the second quarter. The average rent increased by 12.7 percent year-over-year, to $2,508 as of April. Housing demand remained elevated across the U.S., and L.A. was no exception. The occupancy rate in stabilized properties increased by 140 basis points year-over-year, to 96.8 percent as of March—on par with pre-pandemic levels.
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The metro gained 324,200 jobs during the 12-month period ending in February, representing a 7.1 percent expansion, 240 basis points above the national rate. California Gov. Gavin Newsom’s proposed state budget, clocking in at $300.7 billion, includes measures meant to tackle issues from rising inflation to housing affordability and climate change. Of the total funds, $37 billion was proposed for infrastructure and housing projects. A total of $18.1 billion, proposed in the form of an inflation relief package, includes $2.7 billion earmarked for emergency rental assistance.
Construction activity continued to rise, with Los Angeles recording 12,420 completions in 2021, setting a new decade high. In April, Los Angeles had 30,079 units under construction, with an additional 150,000 in the planning and permitting stages.