LA Starts Year On Strong Note
Los Angeles’ strong performance is likely to continue this year, with most indicators on a positive trajectory going into the second quarter. The average rent increased by 12.7% year-over-year, to $2,508 as of April. Housing demand remained elevated across the U.S., and L.A. was no exception. The occupancy rate in stabilized properties increased by 140 basis points year-over-year, to 96.8% as of March—on par with pre-pandemic levels.
The metro gained 324,200 jobs during the 12-month period ending in February, representing a 7.1% expansion, 240 basis points above the national rate. California Gov. Gavin Newsom’s proposed state budget, clocking in at $300.7 billion, includes measures meant to tackle issues from rising inflation to housing affordability and climate change. Of the total funds, $37 billion was proposed for infrastructure and housing projects. A total of $18.1 billion, proposed in the form of an inflation relief package, includes $2.7 billion earmarked for emergency rental assistance.
Construction activity continued to rise, with Los Angeles recording 12,420 completions in 2021, setting a new decade high. In April, Los Angeles had 30,079 units under construction, with an additional 150,000 in the planning and permitting stages.
Read the full Matrix Multifamily Los Angeles Report-June 2022