Los Angeles Multifamily Market
2024 Investment Forecast
Delivery Pullback Contrasts National Trend;
Future of Measure ULA on Investors’ Minds
Household formation tally to set near-term record. After achieving a historically low mark of 2.1 percent in early 2022, vacancy in Los Angeles County has consistently risen, surpassing 5 percent last year. This trend ends during 2024, however. The metro’s record total job count, and expectations for positive near-term hiring, are positioned to support the formation of 21,500 households this year, the highest total in more than a decade. This standout growth occurs alongside a slowdown in apartment deliveries, with 21 other major U.S. markets slated to add more units than Los Angeles County this year. Among key segments of the metro, Greater Downtown Los Angeles is slated to add the most apartments. Meanwhile, the San Fernando Valley and South Bay-Long Beach will register annual stock expansions of just 0.4 and 0.7 percent, respectively, suggesting these areas will remain among the county’s tightest rental markets.