Southern California Multifamily Rents and Sales Surge
Inland Empire Apartment Rents Jump 50% Since 2020
Apartment rents and multifamily sales prices are both surging in Southern California.
According to the latest data from NAI Capital, both measures hit record highs over the past year. Multifamily sales shot up 83.4 percent since the third quarter of 2020, totaling more than $12.1 billion in Southern California, while rents reached record highs in Los Angeles County, Inland Empire, Orange County and Ventura County.
Compared to the third quarter last year, average rents jumped 49 percent to $1,824 in the Inland Empire; 17 percent to $2,398 in Orange County; 14 percent to $2,361 in Ventura County; and 5 percent to hit $2,017 in L.A. County.
Single-family home prices are also climbing, forcing potential buyers to remain in the apartment rental market longer, which has driven demand and the expectation of strong multifamily price growth.
Housing affordability worsened during the pandemic as the rise in both home prices and rents barely paused, and then quickly accelerated as the economy reopened.
Investors have maintained significant interest. Waterford Property Company recently agreed to pay $206 million for two multifamily properties with a combined 356 units in the city of Orange. Fairfield Residential acquired a 130-unit apartment complex in Santa Clarita for $62 million.
Gregory Cornfield can be reached at email@example.com.