Elevated interest rates have created uncertainty, but they have also pushed Los Angeles multifamily properties to basis levels not seen in years. Here’s why today’s market could offer a compelling long-term opportunity.

The 2026 interest rate for qualifying security deposits at Los Angeles RSO properties is 3.03%. Here is what multifamily owners should know.

The Federal Reserve continues to take a cautious approach, holding interest rates steady as policymakers weigh persistent inflation against signs of a slowing labor market. While the Fed remains open to future policy adjustments, most market participants expect rates to remain unchanged for the rest of the year. Uncertainty surrounding inflation, global energy markets, and economic growth continues to influence borrowing costs. According to Marcus & Millichap, these condition

The ADU Parking Tradeoff in LA Multifamily A lot of LA multifamily owners are adding ADUs right now, but there’s no clear consensus on the best strategy. I’m seeing two very different approaches: Some owners are eliminating parking entirely to maximize unit count Others are adding a few ADUs while preserving most of their existing parking There’s no “right” answer. It’s a classic short-term vs. long-term tradeoff. Short term: Units without parking are generally harder to leas

One thing I don't think enough people are talking about: The buyer pool for LA multifamily may be considerably bigger in the next 6 to 18 months. Once the lock-up periods expire and liquidity events occur at companies like SpaceX, Anthropic, and OpenAI, there will be a massive amount of new wealth created, especially here in California. If you're a tech employee who suddenly has a few million dollars of liquid net worth, LA multifamily starts to look pretty attractive. You ca

Where are the Good Deals? Los Angeles County currently has a massive amount of inventory across nearly every submarket. As of today, there are 1,279 multifamily buildings on the market. The first quarter of 2025 was quiet, with only 320 transactions—a significant drop from 477 deals in Q4 2024. The wildfires earlier this year contributed to a “pencils down” environment among many buyers. However, select listings are gaining strong momentum—especially well-located value-add pr

Has Los Angeles Been Derisked? With the election behind us and vacancy control now defeated for the third time by a large margin, local multifamily transactions should begin to normalize. The risk of New York style vacancy control is in the rearview mirror allowing buyers to come back to value-add opportunities. For most of 2024, upside and value add were pretty much gone as buyers were focusing on just current cash flow and would hesitate to underwrite rental upside through

Fed takes second step on gradual rate-lowering path. After reducing the overnight lending rate by 50 basis points in September, the...

Discrepancies cloud employment data. October’s atypically low job creation total of 12,000 is largely the result of sector hiring...

Labor market flexes renewed strength. Following three straight monthly gains below 160,000 new jobs, national employment rose by 254,000...

What is SB1211 & How Does it Impact my Multifamily Portfolio? SB1211 allows up to 8 additional ADUs on multifamily properties not to exceed the current unit count. For example, if you have a 5 unit building you could, under SB1211, add an additional 5 units. This is very positive for buyers having a tougher time underwriting Los Angeles multifamily with higher interest rates. The most ideal multifamily properties to take advantage of the density allowed by SB1211 would be pro

Labor market moving closer to equilibrium even amid strong hiring. Total employment increased by 272,000 in May, coming in above the...

Commercial Real Estate Market Overview Despite challenges posed by rising interest rates since March 2022, the commercial real estate...

Inflation Trends Cloud Fed's Path Still-elevated inflation is leading Wall Street participants to delay expectations for the Federal...

Rising Unemployment Releases Pressure on Inflation Employment growth accelerated in February with 275,000 jobs created, yet the...

Inflation metrics are showing a mixed picture, with the headline Consumer Price Index (CPI) rising 3.1 percent over the year ended...

As we step into a new year, understanding the intricacies of the labor market is pivotal for grasping broader economic trends. In this...

What Rent Increase are We Getting for RSO Units? After four years of no rent increases, the LA city council had a hearing to freeze rent increases another 6 months to July which was thankfully shut down. Starting in February 2024, landlords will be allowed a 4% rent increase on units under RSO. The original proposal was for a 7% rent increase which many believe really should have been a 10%+ increase to make up for significant increases in expenses since 2020 while rents rema

Understanding the dynamics of job growth, interest rates, and real estate trends is essential for navigating today's complex economic...

As we navigate the ever-changing economic landscape, understanding key indicators like inflation and housing dynamics becomes crucial. In...