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Market Report

Los Angeles Multifamily Market Report

2024 Investment Forecast

Pullback in Local Deliveries Contrasts National Trend;
Future of Measure ULA on Investors’ Minds

Household formation tally to set near-term record in nation’s second-largest market. Since matching its historically low mark of 2.1 percent in early 2022, Los Angeles County’s vacancy rate has steadily risen, reaching the low-5 percent band at the end of last year. This streak, however, ends during 2024. The metro’s record total job count, and expectations for positive near-term hiring, are positioned to support the formation of 21,500 households this year, the highest total in more than a decade. This standout growth occurs alongside a slowdown in apartment deliveries, with 21 other major U.S. markets slated to add more units than Los Angeles County this year. Entering 2024 with vacancy rates below the metrowide average, the San Fernando Valley and South Bay-Long Beach will register annual stock expansions of just 0.4 and 0.7 percent, respectively, suggesting these areas will remain among the county’s tightest rental markets.
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