Market Update

Anie Mayelian
LA Apartment Building Sales

Integrity.     Excellence.     Results.

The L.A. apartment market has witnessed notable improvements since the beginning of 2021 after experiencing the worst conditions in 2020 in over a decade. Rents recovered to pre-pandemic peaks in May 2021, whereas the nation achieved that milestone in January 2021. Los Angeles has seen elevated construction levels for years and still has a sizable pipeline, 27,000 units, that needs to be absorbed in the coming quarters. Recent transaction activity has been robust and demonstrates investors are active in L.A.'s apartment market and willing to stomach some of the highest pricing and lowest cap rates in the nation. Many of the major apartment properties that have recently sold involved public/private partnerships that acquired newer market-rate apartments to convert to communities restricted to middle-income renters.

Stats and Updates are From Costar

Costar. # 1 Commercial Real Estate Information Company, 2022, https://www.costar.com. Accessed 16 May 2022.