Area in Transition Brings Higher-End Projects
By Ryan Patap
CoStar Analytics
June 26, 2023 | 8:04 AM
After seeing an upswing in development activity in recent years, Northeast Los Angeles' apartment construction pipeline is near the highest level seen in decades.
Historically, the area saw little to no apartment construction. It had long been a working-class area that offered relatively affordable housing options, making it harder to justify construction. The decade from 2008 to 2017 only saw an average of 23 units per year added.
Several neighborhoods have undergone significant gentrification in recent years, including Eagle Rock, Echo Park, Highland Park and Silver Lake. As a result, developers started to ramp up activity starting in 2017. As home prices and rents increased dramatically in the area over the past decade, it brought residents with notably higher incomes. These newcomers have attracted a plethora of trendy restaurants, coffee shops and nightlife options.
Last year saw 260 net new units added, the most during a year in decades. One of the largest recent completions was Zag Apartments in Echo Park. The 70-unit property by Aragon Properties opened at the end of last year. The current average asking rents at the property are $2,850 per month, 60% above the Northeast Los Angeles average.
With 940 units under construction, or 4.8% of existing units, Northeast Los Angeles has the second-largest apartment pipeline in Los Angeles County on a percent-of-inventory basis. In the near term, both M1, with 100 units in Silver Lake, and Sunset Reflections, with 75 units in Echo Park, will complete in the coming months. The largest development underway, 2910 N. San Fernando Road in Glassell Park, will comprise 370 units, with an opening slated for the middle of 2024.