The Small Space Marketplace

List Your Space

Find Space

Home About Us Executive Subscriber Membership RENTV Conferences Newsletter Contact Us Advertise
December 6, 2019
 Search RENTV
   Go!
 Video Programs
 News
News Home Page
Southern California
Northern California
Pacific Northwest
Texas/Southwest
Retail
Multifamily
Financing
Prop. Management
Archives
Press Releases
 R. E. Marketplace
Service Providers
JobWorks
Property Spotlight
 RENTV  Conferences
Subscriber Login:
  
Email      
    Go!
Password      
Forgot Password?



WHAT'S NEW
Printer-friendly Version   Email an Associate
Demand for SoCal Multifamily Housing Still Rising

8/12/16

Demand for multifamily housing in Southern California continued rising in the first half of 2016, absorbing much of the newly completed supply in most markets, according to NAI Capital’s latest Multifamily Market Outlook Report. The vacancy rates remained low and rents continued to rise in all markets. As more supply enters the market in the second half 2016, multifamily housing fundamentals will moderate in markets with high levels of new construction. Sale transactions, albeit at a lower volume due to limited supply for sale, demonstrated strong demand from investors.

Los Angeles County saw continued rent growth in the second quarter of 2016.

• Average asking rental rate registered $1,647 per unit, up 5.2% over last year
• Vacancy increased by 20 basis points over the quarter and the year to 3.5%
• 12,497 units sold this quarter in 960 transactions at an average price of $218,788 per unit, which is 8.8% higher than last year

According to Kevin Kawaoka, CCIM, Vice President, NAI Capital, “The Los Angeles multifamily housing market continues to show strength supported by steady job growth, increasing rents and attractive financing. As cap rates continue to compress and interest rate hikes loom on the horizon, we are in an ideal market for sellers.”

Orange County

• Average asking rents at $1,770 are up 3.6% from a year ago
• Vacancy ended at 3.6%, up 20 basis points from the prior quarter and up 80 basis points from a year ago
• 1,500 units sold in 71 transactions with average unit selling for $255,490, represented a 7.2% increase from a year ago

Steve Gim, Vice President, NAI Capital said, “The multifamily market continues to show very high demand with little supply due to increased amount of buyers being in the marketplace, including foreign capital. This demand is driven by an abundance of capital with very low interest rates. Cap rates have been compressed to the 4-5% range in Orange County for C-Class product. Investor demand has never been higher, with multiple offers on every apartment building that hits the market. We are also seeing more off market transactions taking place.”

Inland Empire

• Average asking rents ended second quarter at $1,204 per unit, a rise of 2.9% over the year
• Vacancy, at 2.8%, held steady over the last quarter and is up 20 basis points over last year
• 3,363 units sold this quarter with an average sales prices per unit of $159,217, up 13% over the year

Senior Vice President, DeLonne Valens with NAI Capital added, “One of the main driving forces fueling this growth in the Inland Empire is the fast paced expansion of jobs. With the tightening of the rental market, sales on Class A and B properties are experiencing compressed cap rates averaging in the 4% cap rate range. Class C properties are also experiencing lower cap rates and higher cost per unit sale prices across the board.”






Return to the Archive page


 


 


 
The Foto Finisher

 
 



Home | About Us | Newsletter | Contact Us | Executive Subscriber Membership | Executive Subscriber Home | Advertise
Southern California | Northern California | Pacific Northwest | Southwest | Retail | Multifamily | Financing | Property Management
Archives | Press Releases | Service Providers | JobWorks | Property Listings

Copyright © 2019 by RENTV, All Rights Reserved
Website designed by Regency Web Services, Inc. and powered by Lightning Media