Dear Friends and Family,
As the Los Angeles multi-family market struggles to stay afloat, some investors see huge opportunity when the pandemic subsides. Rents in Los Angeles have decreased 7% since the start of the pandemic, but San Francisco rents have fallen a dramatic 21.7%. Multi-family landlords are keeping a close eye on property valuations as vacancy rates rise and rental rates fall across Los Angeles. All while we look at what Ben Bernanke and Bob Hart have to say about a recovery.
CEO Sees a Chance to “Make Billionaires” in LA Multi-Family Market
In the short term, LA brokers and originators working with multi-family spaces have had to move with agility to stay afloat for those investors who see an opportunity in a low rate environment and weaker multi-family market. In the long term, one CEO sees serious opportunity in the LA multi-family space when the pandemic subsides, and the pull of the silver city can be felt across the country again.
Los Angeles Rents Fall Nearly 7% Since March
Los Angeles rents have decreased 7% since the start of the pandemic, placing the city somewhere in the upper-middle in terms of rent declines. Data from Apartment List shows that rents in Los Angeles have decreased 6.9%, while San Francisco – which leads the nation in rent decrease-rents have fallen 21.7% and the nation has an average rent decrease of 1.4%.
LA Multi-Family Property Valuations Seem to Be Holding Tight, Experts Say
Before the coronavirus pandemic, Los Angeles’ multi-family market was humming, and 2020 rents were forecast to rise. This year has not played out as expected. Now, as we watch vacancy rates rise and average rents fall in Los Angeles, many property owners, developers, and market-watchers are also keeping a close eye on the value of LA’s multi-family properties.
Eight Takeaways from Ben Bernanke’s Conversation with Marcus & Millichap
During a conversation webcast hosted by Hessam Nadji, CEO of Marcus & Millichap and co-hosted by Robert Hart, CEO of TruAmerica Mulitfamily, Dr. Bernanke sounded largely hopeful, noting that if the US can get the virus under control within the coming months, likely with the help of a vaccine, the economy might recover quicker than it did from the last downturn. The reasons include a fundamentally sound financial system this time around and aggressive action by the Federal Reserve.
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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!