Los Angeles Multifamily Rents Sustain Record Levels

Tim Steuernol

Apartment rent growth in Los Angeles has slowed, but the market has sustained record-high rents with nominal increases. According to a recent report from NAI Capital, Los Angeles apartment rents increase .6% in the first quarter to an average of $1,861 per unit over the previous quarter and nearly 3% over last year. While rent growth is slowing its rapid pace—as many have expected—the market has maintained record-high rents and developers have continued to meet high pro formas.

“The really strong economy and the lack of availability of affordable housing is really driving the rental rates,” Tim Steuernol, EVP at NAI Capital, tells GlobeSt.com. “There are a significant number of high-earning tenants in Los Angeles that can’t afford a single-family homes because there is still a gap between mortgage rates and rental rates for apartments. Those tenants have the ability to pay high rental rates on apartments because of their income. That is a big factor.”