Los Angeles County’s Multifamily Market Moderates Rent Growth, New Construction

In 2023, new construction drove up vacancies, while a new tax and borrowing costs contributed to a decline in sales.

J.C. Casillas
Managing Director, Research
NAI Capital Commercial

The rate and volume of multifamily investment in Los Angeles County decelerated throughout 2023 while a wave of new projects reaching completion drove up vacancy rates.

J.C. said, “Investors are grappling with a price disparity with sellers due to rising interest rates, tight credit and softening market conditions.” J.C. added, “In a backdrop of a soft rental market, new taxes and elevated interest rates, the market is expected to moderate. As credit conditions tighten, the multifamily market is adapting to increased borrowing costs, substantial inflation, a less robust growth outlook, and heightened financial risks.”