The Los Angeles multifamily investment market is picking up as major investors look to move capital away from office and single-family products

Since the beginning of the Covid-19 pandemic in Q2 2020, the Los Angeles multifamily investment market saw a massive 6 quarter increase in sales volume with a high of $3B in Q4 2021, followed by 8 straight quarters of decreasing sales volume down to $300M in Q3 2023.

Sales volume and sales price per unit showed a direct correlation, where price per units peaked when sales volumes where at their highest, and price per units dropped when sales volumes were low. Currently, we see both trending upward on our bell-shaped curves, with the price per unit sitting at $343K for Q2 2024 so far. As sales volumes increase, we see the value of apartment units growing as well.

The Los Angeles multifamily investment market is appealing to investors due to buyer pessimism within the office product type as office valuations are at the lowest they have ever been. Additionally, we see a decrease in residential housing sales due to current economic conditions, causing many families to divert to renting as opposed to taking out a high interest rate loan to make a purchase.