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Category: Apartments, Multifamily Tags: Apartments, los angeles, market report, Multifamily

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Multifamily in the East Los Angeles submarket is generally smaller, older, and less luxurious compared to other parts of the Los Angeles metro. As a result, average rents in this market remain among the lowest in Los Angeles. However, in recent years, low vacancies translated into healthy rent growth. The combination of low vacancies, healthy rent growth, below-average prices, and proximity to Downtown attracts investors priced out of other parts of Los Angeles. The low land costs and the proximity to employment and cultural centers may eventually attract developers and wealthier households. However, at this point, only Boyle Heights is seeing significant evidence of the gentrification going on in neighboring Downtown. Demographic realities and restrictive zoning traditionally limited developer interest in East Los Angeles. This has led vacancy in East Los Angeles to be one of the lowest rates of any Los Angeles submarket. During these economic times, East Los Angeles is one of the most liquid submarkets in the metro, and average per-unit pricing has more than doubled over the past decade. Even a global health and economic crisis can’t deter investors’ appetite for local apartments, and several sizable trades have closed since the introduction of COVID-19.

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