Q1 2022 Multifamily Market Outlook – Los Angeles
In Los Angeles County the vacancy rate for multifamily housing fell to 3.3 percent in the first quarter of 2022, down 20 basis points quarter over quarter and 100 basis points year over year. LA County continued to emerge from the pandemic with strong demand for rental housing due to employment growth, as well as the lack of affordability of single-family homes for sale. The median price for existing single-family homes in Southern California hit a record $802,500 in March of 2022, more than 11.9 percent higher than last year, according to the California Association of Realtors. In LA County, the median sales price in March was $781,050, up 13.3 percent from last year. The statewide eviction moratorium, which was put in place March of 2020 to September 30, 2021, and extended through January 31, 2022, along with rent regulations, has affected some landlords. However, the average rent continued to rise to new heights, up 7.7 percent year over year to $2,083 per unit per month. Sales volume year to date increased 56.5 percent from the first quarter of 2021 and construction increased 8.8 percent compared to this time last year, as demand from investors and developers remained strong.