Koreatown Continues To Face Elevated Construction Levels
More Than 1,000 Units Expected This Year and Next
By Ryan Patap
March 16, 2023 | 2:02 P.M.
LA's Koreatown has the second-largest multifamily construction pipeline on an absolute basis and as a percent of existing inventory in Los Angeles County. Roughly 2,800 units are underway there, representing 4.7% of the current unit inventory.
There are four projects under construction with 200 or more units in the area. The largest is Hallasan, a 375-unit complex by national developer Holland Partners. The project is slated to complete in the coming months.
With more than 1,000 units expected to be added in each of 2023 and 2024, the supply currently underway should lead to continued pressure on Koreatown occupancies for at least the near- to mid-term. The high-end portion of the market will feel the greatest impact because the lion's share of planned units are in this segment.
Since 2015, the Koreatown neighborhood has had one of the largest supply pipelines in the Los Angeles apartment market. Prior to this period, developers did not really focus on the region, which historically had some of the lowest rents in central Los Angeles. But in recent years, Koreatown has added more retail, restaurants and nightlife options.
During the past five years, Koreatown saw 5,300 net new units completed, second in the market only to downtown Los Angeles. Developers have been focused on the limited pockets of the county that are most receptive to density. Being one of the densest neighborhoods in the nation with over 42,000 residents per square mile according to the LA Times, Koreatown has faced less opposition to large apartment projects.
Patap, Ryan. “Koreatown Continues to Face Elevated Construction Levels.” CoStar, 16 Mar. 2023, https://www.costar.com/article/1303793863/koreatown-continues-to-face-elevated-construction-levels.