Multifamily Memo: Los Angeles Multifamily Shows Signs of Renewed Momentum

As 2023 came to a close, the Los Angeles multifamily market began showing encouraging signs of stabilization. Rent increases for RSO properties were set to resume in early 2024 after several years of freezes, giving investors renewed confidence in rent-controlled assets. At the same time, well-priced listings continued attracting multiple offers despite a significant increase in available inventory across Los Angeles County.

Creative financing also became an increasingly important part of the market. Buyers actively sought properties with assumable loans or seller financing to offset higher borrowing costs, while sellers adjusted to a slower transaction environment. Although rent growth had moderated compared to previous years, Los Angeles continued to outperform many high-growth markets because of its limited new housing supply.

Looking ahead, the gap between buyers and sellers could continue narrowing if inflation eases and more owners decide to sell rather than refinance maturing debt. Those trends may help improve transaction volume as the market moves into the next cycle.

What This Means for Investors

While financing challenges remained, Los Angeles enters 2024 with improving fundamentals. Limited housing supply, renewed buyer activity, and a more balanced market could create attractive opportunities for investors focused on long-term apartment ownership.