Dear Friends-
Frank and Viktorie of The Ponce Real Estate Group have been tracking the effects the fires created across the Los Angeles multifamily housing market. Since the onset of the wildfires in Greater Los Angeles earlier this year, the region's multifamily market has been adapting, highlighting an opportunity for growth and resilience. From January 7th to January 27th, the overall availability of LA apartments saw a slight contraction by around 1,550 units, translating to an 8% reduction.
Larger units, like two- and three-bedroom apartments, which account for 34% of the market-rate units in Greater Los Angeles, experienced the most significant decline in availability by approximately 1,080 units or 14%. This reflects a thriving community spirit as new renters, displaced from single-family homes by the wildfires, find new places to call home.
The strong demand for top-tier apartments underscores the region's resilience. Four- and five-star apartments, making up only 15% of Greater LA's market-rate inventory, saw a reduction in availability by around 1,120 units, while one-, two-, and three-star properties experienced a more modest decline of 140 units.
Communities like Altadena and the Pacific Palisades, with their strong demographics and relatively affluent households, have shown great solidarity and adaptability during these times. With Altadena's average household income around $151,000 and home values just over $1.4 million, and Pacific Palisades' households averaging $201,000 in income and $3.8 million in home values, these areas demonstrate the power of community and resilience.
As we move forward, the broader region's apartment market will continue to evolve, showing the strength and unity of Greater Los Angeles in the face of adversity. The availability data over the past 20 days highlights not just the challenges, but also the potential for rebuilding and growth. Give us a call for a no obligation evaluation of your apartment building.
Stay positive. Remember, if you need a smile, I will lend you mine.
