Strength in the apartment market continues. Apartments sales volume in 2016 was another record. The forces that have been driving the apartment investment market remain in place and are expected to keep rolling along in 2017 and into 2018. It is a good time to own apartments in LA as analysts believe values and rents are likely to continue growing but at a slower pace. The bulk of apartment properties in LA are in working class neighborhoods. This marks the core of LA’s affordable housing and rental demand remains strong. One asks, how long with apartment properties be priced at historically low cap rates? News of rising interest rates has been telegraphed and is not likely to have much impact on values. LA is one of the most attractive rental investment markets in the country due to its improving economy, growing jobs and young population. Apartments remain the investment of choice among commercial investors as the asset of choice and an ideal defensive asset.
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