The Market Had Seen a Continued Rise Since Early 2022
By Ryan Patap
December 29, 2023 | 7:28 AM
Los Angeles apartment market vacancy has held steady since the summer — hovering around 4.9% since July — after rising in early 2022. Renter demand, quarter to date, of around 1,300 units was mainly in line with the approximately 1,400 units added in this period.
Quarter to date, the most significant improvements in greater Los Angeles' apartment vacancy rates have been in Woodland Hills, at 60 basis points, doowntown Los Angeles, at 40 basis points, and Mid-Wilshire, at 20 basis points. Conversely, vacancy increases quarter to date have been most pronounced in Northridge, at 50 basis points, Sherman Oaks, at 40 basis points, and Long Beach/Ports, at 30 basis points.
Recent trends should be welcome news to landlords, who, in addition to contending with declining rents since August, have seen vacancy rise for a year and a half from a recent low of 3.9%. But the weaker conditions the market has faced could be turning a corner.
This outlook aligns with the current market forecast, which calls for a modest rise in vacancy during the first quarter before apartment occupancies begin tightening. Renter demand is forecasted to remain weak in the coming months due to slow economic growth but will begin to improve in the second quarter, with demand more in line with historical renter demand.