Dec
20
Interest Stays High in LA
ByRent growth continues to derive from a disconnect between growing supply in the Lifestyle segment and demand for workforce properties.
Following a strong showing in 2016, rents in Los Angeles continued to grow in 2017, albeit at a more moderate pace. At the end of October, the 3.6 percent year-over-year improvement rate was still well above the 2.3 percent national average. The bulk of growth results from demand for workforce and affordable units, but limited deliveries in that area have pushed up rent gains in the Renter-by-Necessity segment—at 5.0 percent year-over-year through October. Low acquisition yields and some investor reticence have slowed down transaction activity to cycle averages…
