Year-to-date growth underperforms national trends
By Ryan Patap
CoStar Analytics
September 10, 2024 | 1:49 P.M.
After gains in the first half of 2024, multifamily rents in Greater Los Angeles stayed flat over the summer.
Average daily asking rents have stayed fairly steady since late May, hitting $2.94 per square foot per month in early September.
Year to date, rents in Greater Los Angeles are up around 1%, trailing the nationwide rise of 1.6% . Relative economic softness — particularly in the entertainment and technology sectors — and out-migration by residents continue to weigh on overall conditions.
With marketwide occupancies remaining largely stable during the past year, most landlords have limited ability to push rents significantly. Throughout Greater Los Angeles, year-to-date rent changes have ranged from losses of 0.9% in West Hollywood to gains of 4% in the north San Fernando Valley. Most locations in the market have experienced modest upward momentum during this time.
CoStar expects that rent growth in Los Angeles will moderately accelerate in the near term. This outlook is due to anticipated renter demand better matching supply additions in the near term, which should result in market-wide vacancy declining going forward.
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