Los Angeles Apartment Market Sees Vacancy Hold Steady

Los angeles apartment Market trends

Steady Vacancy Rates

The Los Angeles apartment market has held a steady vacancy rate around 5% since July 2023, indicating a balanced market. This stability is crucial for both investors and renters, providing a reliable environment for financial planning and housing security.

Year-to-Date Renter Demand

As of the first half of 2024, renter demand in Los Angeles reached approximately 2,600 units. This demand slightly exceeds the 2,400 units added to the market since July 2023, showcasing a healthy appetite for rental housing.

Supply-Demand Balance

The improvement in the supply-demand balance in Los Angeles contrasts with many other U.S. markets. While other areas struggle with elevated supply pipelines and rising vacancies, Los Angeles has managed to stabilize and even improve its vacancy rates.

Localized Improvements and Increases

• Improvements:

  • Downtown Los Angeles: 80 basis points improvement.

  • Burbank: 70 basis points improvement.

  • Mid-Wilshire: 60 basis points improvement.

• Increases:

  • Venice Beach: 110 basis points increase.

  • Westlake: 80 basis points increase.

  • Glendale: 60 basis points increase.

Market Outlook

The Los Angeles apartment market appears to be on the verge of improvement. After experiencing losses in late 2023, rent growth has resumed in 2024. Additionally, construction levels have moderated, which is expected to contribute to incremental improvements in market-wide vacancy rates. Positive Changes are anticipated in the near term, signaling a potential turning point for the market.

*Credit CoStar