Many analysts think interest rates may have bottomed, rates may continue to stay low longer. A 30-year fixed rate home mortgage was 3.56% in July 2016, 3.64% in October [bankrate.com].
Average rents across California have increased 24% since 2000 [California Association of Realtors]. Rents are still increasing but at a slower rate. Affordability is an issue, many renters are spending more than a third of their income on rent.
Downtown LA is awash in residential construction with more than 10,000 residential units now being developed. Some in the industry wonder how long the current boom will last. One optimistic developer speaks as a big believer in downtown LA. He believes downtown is still in its juvenile phase and looks forward to be part of its long term growth. Apartment vacancy rates citywide are very low, about 3%, but downtown landlords are offering discount incentives to lure tenants.
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