Los Angeles Multifamily Market Report

CBD leads the market in net absorption. Each of Los Angeles’ primary multifamily regions — Greater Downtown Los Angeles, South Bay-Long Beach, Greater San Fernando Valley and Westside Cities — recorded vacancy compression over the yearlong period ended in March. Barriers to homeownership aided renter retention across these areas. In-office mandates and demand stemming from households displaced by January’s wildfires also contributed to lower vacancy — most notably in Greater Downtown Los Angeles. Here, renters absorbed a net of 5,400 units, eclipsing the combined total for the other three regions. With concessions prevalent downtown — approximately 30 percent of units offered concessions in the first quarter — and the area representing a lower-cost alternative to South Bay-Long Beach and Westside Cities, local units may gain in appeal among more budget-conscious renters.