SoCal Buffered from Slowdown in Multifamily

Real estate experts forecast the Southern California multifamily market at the Casden Multifamily Forecast.

LOS ANGELES—Southern California should expect another two years of growth in the multifamily sector, according to experts at the USC Casden Multifamily conference. While there have been reports forecasting a slowdown in the bullish multifamily market this year, Raphael Bostic, interim director of the USC Lusk Center for Real Estate says not to expect the local market to let up.

“Despite rising home sales and increasing multifamily construction, growth in population and employment is keeping demand for rentals very high when compared to new inventory entering the market,” Bostic tells GlobeSt.com. “Developers have been able to respond to the quickly changing economic outlook, bringing multifamily construction to pre-recession levels with the help of an 18% increase in permits for construction. Millennial demand for multifamily housing in particular should remain strong in the coming years, adding to the market’s active growth. Savvy developers must react promptly and look toward submarkets to build and fulfill that demand.”