Buyer Pool for LA Multifamily to Increase Within the Next 6-18 Months

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 can invest in your own backyard. You can diversify away from the same tech stocks and startup equity that created your wealth in the first place.

You can earn a 6%+ return in an asset class that is far less correlated to the technology sector than your existing holdings. You get depreciation and other major tax advantages. The next major wave of multifamily buyers may simply be people cashing out of the biggest AI and technology wealth creation cycle California has ever seen in decades.

With AI creating new millionaires at an incredible pace, it is not hard to imagine a meaningful amount of that capital finding its way into Los Angeles apartments.

If that happens, it could provide a meaningful source of additional liquidity for the LA multifamily market over the next several years.