Highland Park & Northeast LA Multifamily Market Report

Highland Park, located within the Northeast Los Angeles submarket, saw rental rates peak at the end of 2022, recording a four percent year-over-year rent growth rate. Rates are expected to moderate over the next few quarters as the market stabilizes. The occupancy rate dropped slightly in 2022, from a rate of 97.13 percent to 96.66 percent. Sales volume has recorded $24.6 million over the past 12 months, recording an average price per unit of $290,282.

 

 

Expenses

Average Cost Per Unit

• Administrative — $200
• Utilities — $1200
• Payroll — $400
• Repairs & Maintenance — $500
• Insurance — $450
• Contract Services — $120
• Landscaping — $100
• Electricity — $400
• Water, Sewer, Trash — $400
• Management Fee — 4.5%
• Operating Expense Ratio as % EGI — 42%

 

By the Numbers in the Past 12 Months

• Units Delivered: 0
• Average Vacancy Rate: 3.3%
• Average Effective Rent Per Unit: $1,493
• Average Effective Rent Per SF: $2.20
• Average Price Per Unit: $244,755
• Average Price Per SF: $337.63
• Sales Volume: $24.6M
• Cap Rate: 4.0%
• GRM: 16.22

 

Demand

Employers

A majority of the population are in the occupation of arts/design/entertainment/sports/media, while the others are in office/admin/management.

 

Crime Stats

• Los Angeles (zip 90042) violent crime is 47.2. (The U.S. average is 22.7)
• Los Angeles (zip 90042) property crime is 52.5. (The U.S. average is 35.4)

 

Education

There are 15 public schools serving 5,624 students in 90042. There are 3 private schools with 460 students.

The top schools are:

• Highland Park Continuation High School
• Benjamin Franklin Senior High School
• Academia Avance Charter

 

Where/How is the City Investing Tax Dollars?

• The funds, previously identified to build the 710 Freeway, will be used to enhance the pedestrian environment in the center of Highland Park.
• The budget for homelessness has more than doubled.
• $143M for COVID-19 response and recovery.
• The city has set aside $43 million to enlarge and prolong non-congregate accommodation at hotels and motels in order to support individuals who are homeless in keeping safe social distance and adhering to other important measures to prevent the spread of COVID-19.
• $791M homelessness budget.