Fewer Apt Vacancies in LA Except for Luxury

By Dana Bartholomew

Rents have slipped across greater Los Angeles with fewer apartment vacancies except the luxury market, where the vacancy has hit 13.1 percent. Rents across Los Angeles County dipped 0.3 percent in the third quarter to $2,232 from the prior period, while they rose 0.6 percent from $2,218 a year earlier, Bisnow reported, citing figures from NAI Capital.

At the same time, apartment vacancy fell to 4.7 percent, from 5 percent, and a smidgeon lower than last year.

Among the 65,809 luxury units built since 2020, 8,510 are empty, putting the vacancy at 13.1 percent. That means potential renters either can’t or won’t pay for fancier apartments.

A slowing construction pipeline for multifamily projects may increase demand — and raise rents — in the years ahead.

Since 2020, the amount of newly built apartments has been 12.4 percent below pre-pandemic levels, according to USC’s latest Casden Real Estate Economics Forecast, which predicted near-term rent growth of 1 percent next year and 2 percent in 2026.

In Los Angeles County, the average apartment rent is expected to rise to $2,334 a month by mid-2026, a 3 percent increase from $2,276 a month last summer, according to the forecast.

For investors, Newmark Vice Chairman Dean Zander said to focus on a lack of new supply and the county’s shortage of rental housing, and the implications for future rents.

“We’re well-positioned for meaningful rent growth over the next couple of years” because of the trickle of new supply in the pipeline, Zander told Bisnow.

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