Market Report
Los Angeles Multifamily Market Report
3Q 2022
Demand at Both Ends of the Cost Spectrum
Supported by Divergent Renter Preferences
Office returns reboot demand in tech hub. Firms returning to some form of in-person operations has lifted multifamily leasing in the metro's most expensive locale. Since reaching 6.5 percent in the first quarter of 2021, vacancy in Westside Cities has fallen 340 basis points, with renters absorbing 6,400 units during the 15-month period ended in June 2022. This activity coincided with traditional office-using companies absorbing 1.7 million square feet of space. Together, this data indicates more professionals are leasing units proximate to their place of employment, despite many working hybrid schedules. Looking ahead, the interplay between rental demand and office usage suggests positive multifamily absorption may continue if tech firms bolster staffs and require more in-office workdays.
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