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California  + Los Angeles  + Apartments  | 

LA’s Rising Home Prices Puts Pressure on MF Supply

The median home value in Los Angeles has increased 42% since 2008 from $427,400 to $674,600. Rising home prices has meant more people are unable to buy.

JLL’s Henry Gjestrum points out that the current home ownership rate is 51.9%, well below the U.S. average of 64.2%. As in many large cities, people are delaying having families. Furthermore, a preference for urban living near transit lines is halting the expansion into more affordable suburbs.

Gjestrum notes all these factors are driving the demand for multifamily dwellings.

Vacancy is currently at a historic low of 4.5%, down from 5.7% just a year ago. Developers have stepped into high gear with 33,000 multifamily units under construction, which could help to alleviate the shortage of rental units. Given that living expenses are increasing more rapidly than wage growth, and that home affordability continues to decrease, apartment fundamentals are likely to strengthen even more, predicts Gjestrum.

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For comments, questions or concerns, please contact Dennis Kaiser

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

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