RENTAL DEMAND CONTINUES TO OUTPACE HOMEOWNERSHIP.
PLAYING THE LONG GAME The broader picture in LA multifamily right now is stabilization, not crisis. Vacancy has only risen about 100 basis points since 2022 despite 32,000 new units being delivered. Rental demand continues to outpace homeownership as mortgage rates keep potential buyers in the renter pool. New multifamily construction starts have dropped sharply, which means the supply pressure hitting the market now will ease over the coming years. Independent landlords have always been the backbone of LA's housing stock. The smaller buildings, the well-maintained duplexes and fourplexes and 20-unit complexes throughout the city's neighborhoods are the properties that house working families and keep communities stable. The market is asking more of you than it used to. Higher costs, more regulation, savvier tenants. But it is also rewarding the landlords who adapt. Control your expenses. Retain your tenants. Know what your building is worth. And when the numbers say it is time to make a move, whether that is a refinance, a capital improvement, or a sale, move with good information and a clear strategy. The landlords who treat this moment as a reason to sharpen their operations are the ones who will still be in the game five and ten years from now. And the ones who do it well will be in a stronger position than ever.
TAYLOR AVAKIAN Principal Broker & Founder The Group CRE 916-996-4421 taylor@thegroupcre.com
Taylor Avakian is the Principal Broker and Founder of The Group CRE, a boutique Los Angeles brokerage specializing exclusively in apartment building sales. Taylor has closed over $300M in multifamily deals. He’s been recognized as one of LA’s top real estate professionals and is also the host of the No Vacancy Podcast, the top podcast for Southern California owners, investors, and industry professionals looking to navigate LA’s multi-family market. For more market insights, visit thegroupcre.com/blog.
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