Why this continues to support multifamily demand.

Why inflation remains a key tenant concern.

The U.S. housing market continues to send mixed signals. While affordability has improved modestly thanks to steady wage growth and relatively flat home prices, new-home demand has slowed considerably. At the same time, residential construction activity has fallen to its lowest level since 2020, creating conditions that could benefit apartment owners over the next several years. One of the most notable trends is the shrinking construction pipeline. Residential housing starts

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

A week ago, the Los Angeles Controller’s Office released what it called the “Top 100 Rental Properties” list in LA. As I started going through the addresses, I noticed something interesting. I recognized many of the properties not because I was involved in them, but because a surprisingly significant number of them have traded over the past few years. Roughly 16% of the buildings on the list have sold within the last 4 years. That raises a bigger issue. Instead of focusing on

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

The Los Angeles multifamily market remains active, but today's environment rewards patience and selectivity. Inventory has grown across the county while transaction volume has slowed, creating more choices for buyers. Even so, well-located value-add opportunities continue to attract significant interest, with quality listings often receiving multiple offers despite broader market uncertainty. At the same time, rising operating expenses and refinancing challenges are putting p

The Los Angeles multifamily market may be entering a new phase of recovery. The defeat of vacancy control initiatives has improved investor confidence, allowing buyers to once again evaluate value-add opportunities rather than focusing solely on in-place cash flow. Institutional capital, which had largely remained on the sidelines, may begin returning to the market. While financing remains a challenge, the outlook is becoming more balanced. Although the Federal Reserve has be

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

Lower-cost submarkets on solid footing. Amid a period of household budget tightening, local apartment fundamentals point to strong...

California's new SB 1211 legislation gives multifamily owners another tool to unlock value from existing properties. Beginning January 1, 2025, qualifying multifamily buildings may be able to add up to the existing unit count in new ADUs, creating new opportunities for owners to increase housing supply and improve long-term property performance. Larger lots with excess parking or open space may offer the greatest upside. The featured Highland Park example illustrates how thou

The key CPI measures resumed their descent in April. Annual growth in the headline and core consumer price indices—the latter omitting...

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

Is the Los Angeles Multifamily Market Starting to Turn? After a slow 2023, signs of renewed activity began emerging across the Los Angeles multifamily market in early 2024. While transaction volume remained well below historical norms, buyers were becoming more active as sellers adjusted pricing expectations. Well-priced assets continued to attract interest, demonstrating that demand remained intact despite elevated borrowing costs. Many investors entered the year anticipatin

More Prospective Buyers and Sellers Coming to Terms The number of existing single-family homes available for purchase swelled to a...

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...

Window of Stronger Buyer Demand Lifts Home Prices The median sale price of an existing single-family home surged to a record high of...

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