Huge Rent Growth, Flat Vacancy for Multifamily

J.C. Casillas is the VP of research at NAI Capital.

LOS ANGELES—The Los Angeles multifamily market has shown its longevity during the second quarter with strong rent growth and nearly flat vacancy rates despite several new deliveries, according to the NAI Capital multifamily report. While vacancy rates increased by 20 basis points, according to the report, rents were up 5.2% year over year.

“The market continues to amaze people,” J.C. Casillas, VP of research at NAI Capital, tells GlobeSt.com. “The vacancy only went up 20 basis points in the face of all of this new delivery. I was looking back to the last time that we had huge deliveries in the marketplace, and that was prior to the last downturn. In 2008, there were close to 5,600 units delivered to the market, and at that point, the vacancy went up to 5.3%. It has been steadily declining since then.”