Los Angeles multifamily transaction volume increased sharply in 2018
Los Angeles became the third most active multifamily investment market in the U.S. after New York and Dallas in 2018.
March 25, 2019
- Los Angeles became the third most active multifamily investment market in the U.S. after New York and Dallas in 2018. Transaction volume increased from $5.5 billion in 2017 to over $7.5 billion in 2018, representing a 36.3 percent jump. As a result, LA grew from sixth to third largest multifamily investment market in the country.
- Investors’ heighten focus on Los Angeles is supported by strong market fundamentals. Median home prices have increased 40 percent over the last five years pricing out many home buyers and creating more renters. Multifamily occupancy is currently near peak level in the current cycle at 96.5 percent.
- Unlike other U.S. markets, LA’s new supply poses less of a risk. Most of the region’s submarkets continue to be undersupplied. Coupled with already low vacancy, a thinning development pipeline and potential increases in interest rates, which could create additional barriers to home ownership, we expect the Los Angeles multifamily market to remain strong and garner additional invertor interest.
Source: JLL Research