After a record-breaking year for multifamily sales in 2019, a variety of factors point toward a continuation of the trend for the current year.
“The demand for multifamily in L.A. and Southern California is as strong and active as I’ve ever seen,” said Dean Zander, an executive vice president at CBRE Group Inc. “It’s a combination of the strength of the multifamily sector, the affordability of single-family homes, and the renters that dominate the market today stay longer and aren’t as quick to go and buy a home.”
Attractive financing driven by interest rates that are low — and possibly headed lower — are another factor moving the market, according to Zander.
In 2019, nearly $9.5 billion was spent on apartment buildings in L.A. Over the past 10 years, the multifamily category has seen sales volume jump 574%, according to data from Newmark Knight Frank.
And investors are interested in more than just the Westside and downtown.
Of the top 12 sales by purchase price from Sept. 1 to March 1, according to data from CBRE, the top five were located in Westlake, Koreatown, North Hollywood, Glendale and Little Tokyo.
“They are going to where the properties are,” Zander said of the areas attracting investor interest.