Wave of multifamily deliveries won't stop rent growth in Los Angeles

Overall, home buying will represent a cheaper option than renting for LA residents
  • Twenty-seven LA submarkets experienced year-over-year rent growth of 10 percent or more.
  • The volume of multifamily deliveries next year will double 2015 totals.
  • Multifamily deliveries will be concentrated within two primary submarkets.

Los Angeles’ current multifamily vacancy rate, which sits at around 3 percent, suggests rents will continue to grow in 2016 and the upcoming wave of apartment deliveries will be absorbed. If high single-digit or double-digit rent growth continues next year buying should be a cheaper option than leasing for those that can afford it.