The market for apartment buildings in Los Angeles continues to be robust. Apartment vacancy rates will remain tight and rents will rise for the foreseeable future. Mortgage interest rates are still at historic lows. Many investors across the country are bidding aggressively for apartment properties. Their money in the bank earns almost nothing. They can buy an income producing property in LA with a 3% to 5% cap rate. It is a compelling buyer’s market. Transaction volume is likely sill stay brisk. It is frustrating that there is not enough inventory of listings to choose from. If you ever wondered what a bull market in real estate looks like, this is it!
Vacancy: 3.5% - LA city-wide average apartment vacancy rate will be in second-half 2015.
Rents: $1,870.00 - LA city-wide average apartment rent, up almost 5% from last year.