Los Angeles Multifamily Market Report – February 2024

Employment Market Contracts

Los Angeles multifamily fundamentals were sluggish at the start of the second quarter of 2024, according to the latest Yardi Matrix Los Angeles multifamily market report. Short-term rent growth emerged from negative territory, up 0.1%, to $2,584, on a trailing three-month basis through April. Meanwhile, year-over-year movement slid further, down 0.5%. However, demand remained steady. Despite last year’s decade-high supply expansion, the occupancy rate in stabilized properties declined just 50 basis points to 95.8%.

In the 12 months ending in February, the Los Angeles employment market contracted 0.1%, marking the sixth consecutive month of job losses, while the U.S. rate was up 1.5%, as noted in the national multifamily report. The information sector lost the most jobs (-36,000), mainly due to the writers’ and actors’ strikes, which ended in November. Professional and business services followed with 16,000 jobs lost. Meanwhile, job gains were led by education and health services (45,100 jobs) and government (11,000 jobs). The former has good prospects, sustained by the county’s $1.7 billion Harbor UCLA Medical Center Replacement Program.

Developers delivered 1,728 units through April. While new starts are dwindling, there were 31,423 units underway. Investment activity remained tepid, with $616 million traded through April, for an average per-unit price of $368,240.

Read the full Los Angeles Multifamily Market Report: June 2024