OC Apartment Brokers
SoCal Multifamily Sales Pulse - February 15, 2021 - February 21, 2021
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Here's What's Happening In The Market, Here’s What This Means For You
The Coronavirus Pandemic Has Turned Southern California’s Rental Market On Its Head
With more people working from home, and COVID-19 shutdowns limiting access to restaurants, bars and museums, demand has shifted further down the freeway to the east, new rent data show.
“It’s a pattern that we actually see across the U.S., where these expensive metros are losing households to less expensive, adjacent and more affordable metros,” said Greg Willett, chief economist for apartment tracker ReaPage. “Among the 50 largest markets across the country, (the Inland Empire) is No. 1 for annual rent growth.”
Two other research firms, Yardi Matrix and Moody’s Analytics Reis, show a similar pattern, with the Inland Empire near the top of U.S. metro areas with the biggest rent growth rates, and L.A. County close to the bottom with the biggest rate drops. Orange County ranked in the bottom fifth of U.S. markets in all three rankings.
A Southern California News Group composite of rent surveys by four leading apartment trackers showed Inland Empire apartment rents averaged in the $1,592 to $1,671 a month range during the fourth quarter of last year.
That’s up 5-8% from the year before, data from RealPage, CoStar, Moody’s Analytics Reis and Yardi Matrix shows.
Vacancy rates, meanwhile, fell to 2.9% — the Inland Empire’s lowest rate in figures going back a decade.
In Los Angeles County, just the opposite is occurring: Vacancies are up and rents are down.
L.A. County apartment rents fell for a third consecutive quarter at the end of 2020, averaging $2,081 a month. That’s down almost 4% from an all-time high of $2,165 a month during the fourth quarter of 2019.
The L.A. County vacancy rate — 5.3% in the fourth quarter — was the highest in a decade.
Orange County’s average rent also fell to $2,081, down 0.9% from a year earlier. Its vacancy rate fell, dipping to 3.8%.
Orange County
With 12 Closed Sales for Orange County multifamily last week Orange County sales activity stayed on par with recent weeks of activity. Almost half (5) of the Closed Sales were purchased All Cash. With 14 New Listings, the Total Number of Active Listings remained about the same as the last few weeks at 164 Active Listings. Active Listings Dollar Volume has dropped over the last 3 weeks to $529,761,821.
List of Closed Sales
Southern California
Long Beach multifamily had only 1 Closed Sale last week. This is down from the typical amount of approx. 6-9 Closed Sales. This is probably a one-week anomaly as I don't see sales remaining this slow heading forward. All other market stats are about the same with Active Under Contract Last Week and Pending Listings Last Week at normal levels. The Total Number of Active Listings also remained consistent with 124 Active Listings and Months of Inventory remained the same at 6 months.
List of Closed Sales