Los Angeles Multifamily Market
Rental Activity in Los Angeles’ Two Largest Zones
Has Positive Implications for Fundamentals
CBD supply additions slated to slow. Following three consecutive quarters of negative net absorption, apartment demand in Greater Downtown Los Angeles is exhibiting signs of improvement. During the first half of 2023, renters absorbed a net of 600 units here, an area that accounts for one-fourth of the metro’s rental stock and comprises the Downtown Los Angeles, Mid-Wilshire and Hollywood submarkets. A potential pullback in deliveries over the near-term has the ability to steer more renters to existing available units, which could have a positive impact on local vacancy. Entering the second half, a combined 1,750 apartments were underway across the three submarkets, with active projects averaging just 60 units in scope. This pipeline contrasts the more than 4,000 units that were completed over the past 12 months ending in June.