Los Angeles 3Q23 Multifamily Market Insights Report: Supply outpacing demand in 2023

Highlights:

• The Los Angeles multifamily market softened during the third quarter as vacancy rates ticked higher and asking rents inched lower. Apartment developers remain active with a steady flow of new projects expected to come online through the end of the year.
• The local vacancy rate continued to tick higher during the third quarter, rising 20 basis points to 4.2%. Year over year, the rate increased by 70 basis points.
• Asking rents dipped during the last three months after jumping in the previous quarter. Local rents fell 0.3% during the third quarter to $2,440 per month. Despite the recent decline, apartment rents are up 3.5% from one year ago.
• Multifamily sales activity in Los Angeles continued to slow in recent months as the number of deals to this point in the year is down more than 50% from the same period in 2022. The median sales price year to date is $283,400 per unit while cap rates are averaging around 5%.

Read the report, or engage with our Los Angeles office to learn more.