Year-to-Date Growth Matches National Trends
By Ryan Patap
CoStar Analytics
May 21, 2024 | 7:49 AM
After experiencing losses late last year, average asking rents in greater Los Angeles are on the rise.
In 2023, average daily asking rents in Los Angeles bottomed out in December at $2.86 per square foot each month. Since then, upward momentum has been sustained, with average daily asking rents up around 1% from the recent low, reaching just above $2.88 per square foot each month. Rent movements in greater Los Angeles this year are similar to trends seen nationally, where rents also hit low points in December 2023 and have risen year to date.
Improved renter demand in 2024 has allowed Los Angeles landlords to push modest advances in a stabilizing market. Year-to-date renter demand of around 2,700 units was slightly above the approximately 2,500 units added since the beginning of the year. Apartment vacancy in the L.A. metro area rests at 5% and has been in a narrow range since September.
Throughout greater Los Angeles, year-to-date rent changes have ranged from losses of 0.8% in Tarzana to 4.9% in the Santa Clarita Valley. Even areas that have recently seen elevated levels of new supply, like downtown Los Angeles and Koreatown, have realized gains. Since the beginning of the year, rents have risen by 1.5% in downtown Los Angeles and by 0.7% in Koreatown.
The baseline outlook for the Los Angeles apartment market calls for modest rent growth to persist through the rest of the year. By the end of this year, CoStar expects that rents might rise by 2.1%.
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