Multifamily Market Update – North Hollywood Q1 2024 vs. Q1 2023
NOTABLE SHIFTS
The North Hollywood apartment market exhibited notable shifts in key performance indicators between Q1 2023 and Q1 2024. Median price per square foot (PSF) saw a reduction of 30%, while the median price per unit decreased by 39%. Simultaneously, the median capitalization rate increased by 50 basis points. Transaction volume marked a 20% increase, with 18 transactions in Q1 2024 compared to 15 in the prior year.
In terms of rental market performance, there was a slight uptick in renter demand demonstrated by a 1% increase in effective rent per unit, even though the vacancy rate rose modestly by 27 basis points. These trends indicate a strong rental market despite the broader economic pressures.
As we move further into 2024, the anticipation of the Federal Reserve’s expected interest rate cuts beginning in Q3 could spur additional activity in the market. This is likely to enhance transaction volumes, drawing more investors to capitalize on the adjusted pricing structures and the stabilizing economic landscape.
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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.
