Market Appears Close to Turning a Corner
By Ryan Patap
CoStar Analytics
May 16, 2024 | 11:34 AM
The apartment market in Los Angeles has held steady in the first half of 2024, hovering around 5% since July.
The year-to-date renter demand of around 2,600 units was slightly above the approximately 2,400 units added since July. On a market-wide basis, the supply-demand imbalance that the L.A. apartment market faced in 2022 and the first half of 2023 has improved in recent quarters. This improvement contrasts with many other markets nationwide that have seen vacancies rise in the face of elevated supply pipelines.
Comparing locations within greater Los Angeles, the most significant year-to-date improvements in apartment vacancy rates have been in downtown Los Angeles at 80 basis points, Burbank at 70 basis points and Mid-Wilshire at 60 basis points. Conversely, year-to-date vacancy increases have been most pronounced in Venice Beach at 110 basis points, Westlake at 80 basis points and Glendale at 60 basis points.
The Los Angeles apartment market could be close to turning a corner. After losses late in 2023, rent growth resumed in 2024 and construction levels continue to moderate. CoStar expects that market-wide vacancy will begin seeing incremental improvements in the near term.
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