LA rents double inflation for 2015-Van Nuys up 15% with 1.7% vac

Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes

Insane right but when you unpack the numbers it makes sense. Take the Valley for instance with 1.8 mil residents...they built only 980 rental units. I have heard LA lagged behind SF, outside of an earthquake or disaster, we could still see way more rent growth coming or?

Thoughts?

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

10y

portland and seattle have posted similar results.

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
portland and seattle have posted similar results.
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
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Matt R.
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Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
10y
@Jay Hinrichs We are seeing former rough areas on the north east side pushing $700 a square foot. These were Manhattan Beach/Bev Hills numbers not too long ago. These were originally good hoods back in the day and they seem to returning to their roots. If the economy is solid perhaps the supply and demand fundamentals come into play strongest. There might be some real undervalued central locations if this continues to hold. Right now it appears south LA has lower vacancy than San Fran. That is a little nuts but I guess this is what can happen when supply gets low.
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Matt R.
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Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
10y
For the Valley example, the 2016 new rentals coming online are 3100 and almost 4 times 2015. So investors are gearing up to capture demand. But even 3100 seems super low and I imagine 3100 would barely cover one month's actual new demand. With vacancy rates half of San Fran in many sub markets there might be only one way this plays out. I think I might try to shoot for 3k per mo on what was a 2015 $2200 a month rental value. This would be for spring 2016. That is an off the chart increase but what the heck why not as supply for the most part is completely absent. I know this runs into affordability issues but since when were the good spots of LA affordable on average? Or what am I missing? Thoughts?
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Adrian Chu
Real Estate Broker · Seattle, WA · Member since 2014 · 1k+ posts · 427 votes
10y
Yeah, Seattle has been like that. In the past 5 years, many not-so-good neighborhoods have at least doubled/tripled in value.
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Rao V.
Seattle, WA · Member since 2014 · 77 posts · 5 votes
10y
I agree.
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