Multifamily Market Update – Los Angeles Overall Q2 2024 vs. Q2 2023
SHIFTS
The Los Angeles apartment market witnessed subtle shifts in key financial indicators from Q2 2023 to Q2 2024. During this period, the median price per square foot (PSF) decreased by 3%, and the median price per unit followed suit with a small decline of 1%. Concurrently, the median capitalization rate increased by 32 basis points.
Market dynamics also showed a cooling of renter demand; effective rent per unit went up with a 1% change, and the vacancy rate rose slightly by 23 basis points. Additionally, transaction volume for the period increased by 6%.
Despite these adjustments, the outlook for the Los Angeles apartment market appears to lean towards gradual stabilization. Looking ahead to the latter half of 2024, there is an anticipated increase in transaction volumes, fueled by forecasts that the Federal Reserve may lower interest rates starting late in the third quarter.
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Shared by: John Swartz, True North CRE
John SwartzCompass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.
