LA Region Sees Robust Start to 2022 Multifamily Market
A CBRE report indicates the national multifamily sector saw record leasing activity, rent growth and investment during the first quarter of 2022. Meanwhile, Greater Los Angeles was 4th among all metros for multifamily investments over the past year, with $18.6 billion in total volume, or 5% of the U.S. total.
In terms of year-over-year rent increases, Greater Los Angeles came in 7th in the Pacific region, with a 13.9% jump, while Orange County landed in 2nd place with 17.7% rate hikes and Inland Empire was 3rd at 16.8% higher rents.
“With continued strong rent growth throughout every Southern California market, ranging from 14% to 18% year-over-year, investors are drawn to multifamily opportunities, despite rate pressure,” said CBRE’s Los Angeles-based Executive VP Dean Zander. “Based on offerings we have in the market, there is abundant demand for well-located apartment buildings in this tight rental market.”
Zander added, “We’ve noticed a resurgence in interest in markets that were negatively impacted by the pandemic, including Downtown LA and Hollywood.”