According to a market tracker survey, apartment rents will finish the year high and vacancy rates low across Los Angeles County, and those gains are expected to persist into next year along with a minor building boom. Additionally, city growth will continue in both the San Fernando Valley and the Tri-Cities market of Burbank, Glendale and Pasadena.
The market report stated that “despite the choppy nature of the employment market, overall payrolls should exceed the pre-recession level by the end of this year, helping Los Angeles join San Diego and San Francisco as California markets that are setting new highs in employment.”
A word of caution on the residential front; pockets of weakness could emerge as thousands of new units come on line. Availability of additional rental units should create a competitive climate as owners start signing off on new leases.
One of the reasons that may also be contributing to the multi-family market continuing to outperform the area’s single-family housing is because “people may be shying away from buying a house because a house is a long-term commitment. It is much easier to go out and rent an apartment because you don’t have the commitment to be there for a long time,” says member of the Research Center at California State University Northridge.
The multi-family market of the San Fernando Valley is also getting a boost as the county’s economy makes strides. Job creation is expected to increase from about 76,900 positions in 2013 to 95,00 this year and more than 100,000 next year, the report forecasted. By years end, 10,200 new living units will have been added across the county and builders currently have 2,600 units under construction.
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-excerpt taken from the Long Beach Press Telegram
Published on 2014-11-24 13:10:48
