Multifamily Market Update – West Los Angeles Q1 2024 vs. Q1 2023
A STEADY CLIMB
The West Los Angeles apartment market in Q1 2024 witnessed a couple of shifts compared to the same period in 2023. While the median price per square foot (PSF) increased by 5%, the median price per unit experienced a marginal decline of 2%. Concurrently, there was a slight uptick in the median capitalization rate of 31 basis points (bps).
Despite these fluctuations, renter demand displayed signs of stability, with the effective rent per unit remaining relatively unchanged, even amidst a modest increase of 43 bps in the overall vacancy rate. Transaction volume however, witnessed a substantial decline of 63%. Totaling a mere 11 transactions for the period, indicative of a more conservative investment landscape.
Looking ahead, we anticipate a continued stabilization in pricing as investors adapt to higher interest rates and the economy shows signs of stability. Furthermore, with expectations of the Federal Reserve decreasing interest rates beginning in Q3 2024, we anticipate an uptick in transaction volume in the coming quarters.
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.
