Dear Friends and Family,
I hope you have great holidays and a happy New Year!
As 2019 began with an unclear outlook, the multifamily community is now more confident for 2020 despite potential rent control issues. The Los Angeles multifamily market continues to be in high demand and a top market internationally. We look at how much renters are spending on their rent payments. All while we reflect on the biggest stories of the decade that affected Los Angeles commercial real estate.
Buyers Will Be Out in Force Next Year
“Though the market prognosis was unclear earlier this year, the multifamily community is now more confident there will be a strong level of opportunity in 2020, even in the midst of potential changes brought on by issues like rent control,” says Jeff Lee, president of Capital One Multifamily Finance.
Positive Environment for LA Small Multifamily
The Los Angeles multifamily market is perfectly located at the intersection of visibility and demand dependability. When overseas investors think of U.S. real estate, Los Angeles is one of the top markets on their minds. The demand for rental units is fueled by a strong housing market.
Renters Paid a Record-High $512.4 Billion in U.S. Housing Rent in 2019
Based on new Zillow research, U.S. renters spent a cumulative $4.5 trillion on rent during the 2010s. That’s more than the GDP of Germany or the combined market values of Apple, Microsoft, Amazon and Alphabet.
The CRE Trends That Defined LA This Decade
After a brutal recession, the Los Angeles commercial real estate landscape met the new decade head on and flourished. Led by a strong local economy and low unemployment rate, most commercial sectors in the city and region performed well.
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As always, please respond with your questions, comments and thoughts. Until next time, hope you have a great rest of your day!