West Los Angeles Multifamily Market Report

Market Overview

West Los Angeles is a thriving metro on the West Coast. Its economy includes major industries such as entertainment, tourism, worldwide trade, fashion, and aerospace. The market has a strong entrepreneurial culture and a huge pool of creative workers, leading to a high rate of new business starts and self-employed individuals. Recently, the city’s property transfer tax, the ULA Tax, was introduced to fund more affordable housing programs and reduce homelessness. But because the ULA Tax is collected on all real estate sales and transfers, it has discouraged new multifamily transactions and development, including affordable housing projects.

 

Los Angeles County Housing Stock

Los Angeles County faces a critical housing dilemma: While experiencing a loss of 2% to 3% of its housing stock annually, it only manages to regain 1% each year. The root causes of this disparity lie in a complex interplay of legislative frameworks, market dynamics, and economic factors. Despite these efforts, challenges persist, including financing constraints exacerbated by increased interest rates and escalating construction costs driven by material and labor inflation.

 

5+ Units | 90024

• Cap rate: 5.5%
• Sale price per unit: $897,586
• Average sale price: $6.5M
• Sales volume: $52.1M

 

5+ Units | 90025

• Cap rate: 4.3%
• Sale price per unit: $382,658
• Average sale price: $3.8M
• Sales volume: $63.9M

 

5+ Units | 90049

• Cap rate: 3.7%
• Sale price per unit: $569,865
• Average sale price: $4M
• Sales volume: $23.8M

 

5+ Units | 90064

• Cap rate: 5.1%
• Sale price per unit: $326,921
• Average sale price: $3.5M
• Sales volume: $24.8M