LA’s apartment market remains dynamic. Demand for apartment rentals outpaced supply in 2018. This demand remains steady even considering the high amount of apartments under construction. With current assumptions it would take about four years to absorb the units coming on line. Apartment vacancy rate is slightly tighter at 3.5%. Average monthly rent was up 3.8% over the previous year. In spite of present concerns of high prices and fears of recession the apartment market in LA appears to be healthy.
Some analysts are less assured of continued good times and say 2019 will see slower rent growth and rising vacancies especially in luxury units. Multi-family pricing, says this view, will soften this year but not much given strong demand from tenants and a good picture about jobs.