• A decrease in the vacancy rate and strong investment volumes indicate strength in the Los Angeles multifamily market.
• Construction activity decreased in Q3 2019, but remained above the five-year average with completions totaling 9,585 units for the year ending in Q3 2019 (5.9% above the five-year average of 9,055 completions). Demand in Los Angeles continued to exceed new supply with 10,652 units absorbed over the last twelve months (down 39.1% year over year).
• The vacancy rate in Los Angeles was 3.3%—down 20 basis points (bps) year over year.
• Los Angeles rents grew 2.0% from the prior year. The average monthly rent reached $2,294.
• Q3 2019 multifamily investment in Los Angeles totaled $2.5 billion,down 7.7% year over year but