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Los Angeles Multifamily Real Estate Report

Archwest Capital gathers the latest multifamily real estate statistics in Los Angeles each quarter covering the top stats for multifamily property cap rates, rentalssales, and construction statistics.

Within the Los Angeles multifamily report, we also cover the capital market stats with the latest asset valuesales volumecap rates, and real estate buyer / owner information.

Los Angeles Multifamily Real Estate Report 2021 - Archwest Capital Multifamily Loans

Los Angeles Multifamily Capital Market Stats

The total asset value of Los Angeles’ multifamily real estate market currently stands at nearly $358B. The sales volume during the last year nearly reached $8B at $7.7B total with an average sale price per unit of $297K. The cap rate of Los Angeles multifamily real estate is currently 4.2%.

Total Asset Value: $357.8B
Sales Volume (Last 12 Months): $7.7B
Market Sale Price / Unit: $297,000
12 Month Market Sale Price / Unit: 3.6%
Cap Rate: 4.2%

Los Angeles Multifamily Real Estate Sales Volume by Buyer Type & Origin (Past 12 Months)

Buyer Type:

Private: 72%
User: 16%
Institutional: 8%
Private Equity: 4%

Buyer Origin:

Local: 60%
National: 39%
Foreign: <1%

Los Angeles Multifamily Real Estate Asset Value by Owner Type & Origin (Past 12 Months)

Owner Type:

Private: 65%
User: 12%
REIT / Public: 12%
Institutional: 6%
Private Equity: 5%

Owner Origin:

Local: 71%
National: 28%
Foreign: 1%

Top Los Angeles Multifamily Real Estate Property Statistics

The total amount of multifamily unit deliveries over the past 12 months in Los Angeles is 11,105 with a net absorption of 5,390 units. The average vacancy rate of all multifamily properties in the area is 6.0% with a 12 month rent growth of -0.1%.

12 Month Deliveries (Units): 11,105
12 Month Net Absorption (Units): 5,390
Vacancy Rate: 6.0%
12 Month Rent Growth: -0.1%

Key Indicators for Multifamily Properties in Los Angeles Based on Rating

4 & 5 Star

Units: 118,297
Vacancy Rate: 12.4%
Asking Rent: $2,921
Absorption Units: 1,385
Delivered Units: 663
Under Construction Units: 23,372

3 Star

Units: 215,558
Vacancy Rate: 5.5%
Asking Rent: $2,091
Absorption Units: 245
Delivered Units: 109
Under Construction Units: 2,356

1 & 2 Star

Units: 640,477
Vacancy Rate: 4,9%
Asking Rent: $1,552
Absorption Units: 152
Delivered Units: 0
Under Construction Units: 17

Los Angeles Multifamily Sales Statistics (Past 12 Months)

Los Angeles had 1,437 total multifamily properties exchange hands over the last year. The average price for the properties was $5.3M with an average sale of $297K / unit. The average vacancy of the multifamily properties sold was 7.0% at the time of sale.

Sales Comparables: 1,437
Average Price / Unit:
$297,000
Average Price of Multifamily Property:
$5,300,000
Average Vacancy at Sale: 7.0%

Top Los Angeles Multifamily Property Sales (Past 12 Months)

1) *Rating: 4
Year Built: 2017
Units: 507
Vacancy: 
9.9%
Price (Unit): $300,000,000 ($591,715)
Price / SF: $545

2) *Rating: 4
Year Built: 2019
Units: 494
Vacancy:
11.1%
Price (Unit): $290,000,000 ($587,044)
Price / SF: $632

3) *Rating: 4
Year Built: 2005
Units: 611
Vacancy: 
4.6%
Price (Units): $162,077,870 ($265,266)
Price / SF: $524

4) *Rating: 4
Year Built: 2005
Units: 521
Vacancy: 
3.3%
Price (Unit): $145,751,554 ($279,753)
Price / SF: $550

5) *Rating: 4
Year Built: 2007
Units: 449
Vacancy: 
11.8%
Price (Units): $135,125,000 ($300,946)
Price / SF: $321

*Rating is 1-5, 5 being the best

Los Angeles Multifamily Construction Projects Stats

Los Angeles currently has 276 active multifamily properties under construction bringing an aggregate of 25,963 new units to the area. This represents 2.7% of the current multifamily inventory in LA.

Properties Currently Under Construction: 276
Total Amount of Multifamily Units:
25,963
Percent of Inventory:
2.7%
Average # of Units: 94

Top Los Angeles Multifamily Projects Under Construction

1) Rating*: 4
Units:
1,150
Stories:
7
Project Completion:
Q2 2021

2) Rating*: 5
Units:
910
Stories:
7
Project Completion:
Q2 2021

3) Rating*: 4
Units:
644
Stories:
23
Project Completion:
Q2 2021

4) Rating*: 4
Units:
642
Stories:
4
Project Completion:
Q1 2023

5) Rating*: 4
Units:
516
Stories:
11
Project Completion:
Q4 2023

*Rating is 1-5, 5 being the best

Data Sources: Archwest Capital & CoStar 

Los Angeles, CA Multifamily Loan Products

Archwest Capital’s commercial real estate experts provide multifamily market insights in Los Angeles with the statistics above, and also have access to various financing options. Learn more about Archwest Capital’s California Multifamily Loan Products here. Our team is happy to help with any questions you may have regarding potential multifamily investments in California.

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