City Council Vote Likely to Bump Rents

Long Beach multifamily demand remains strong. Despite losses early in the pandemic, year-over-year rent gains stand at more than 4.2 percent, according to Robert Stepp, principal of Stepp Commercial. 

The Long Beach city council vote of 9-0 enforcing a temporary ban on evictions based on an owner’s request to remodel units will undoubtedly cause rents to continue on an upward trend. Renovations and building improvements will come to a halt and the available turnkey inventory will be leased at a premium.

“Unsurprisingly, owners are feeling abandoned by their representatives and are exiting the market with increased velocity,” says Stepp. “Sales inventory has increased by 500 percent since the vote. The possible good news is for buyers who have been sitting on the sidelines. Buying opportunities will continue to increase over the next few months and we may finally see prices dip between 3 and 8 percent.”