SoCal Multifamily Sales Pulse - February 15, 2021 - February 21, 2021
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Here's What's Happening In The Market, Here’s What This Means For You
The Coronavirus Pandemic Has Turned Southern California’s Rental Market On Its Head
With more people working from home, and COVID-19 shutdowns limiting access to restaurants, bars and museums, demand has shifted further down the freeway to the east, new rent data show.
“It’s a pattern that we actually see across the U.S., where these expensive metros are losing households to less expensive, adjacent and more affordable metros,” said Greg Willett, chief economist for apartment tracker ReaPage. “Among the 50 largest markets across the country, (the Inland Empire) is No. 1 for annual rent growth.”
Two other research firms, Yardi Matrix and Moody’s Analytics Reis, show a similar pattern, with the Inland Empire near the top of U.S. metro areas with the biggest rent growth rates, and L.A. County close to the bottom with the biggest rate drops. Orange County ranked in the bottom fifth of U.S. markets in all three rankings.
A Southern California News Group composite of rent surveys by four leading apartment trackers showed Inland Empire apartment rents averaged in the $1,592 to $1,671 a month range during the fourth quarter of last year.
That’s up 5-8% from the year before, data from RealPage, CoStar, Moody’s Analytics Reis and Yardi Matrix shows.
Vacancy rates, meanwhile, fell to 2.9% — the Inland Empire’s lowest rate in figures going back a decade.
In Los Angeles County, just the opposite is occurring: Vacancies are up and rents are down.
L.A. County apartment rents fell for a third consecutive quarter at the end of 2020, averaging $2,081 a month. That’s down almost 4% from an all-time high of $2,165 a month during the fourth quarter of 2019.
The L.A. County vacancy rate — 5.3% in the fourth quarter — was the highest in a decade.
Orange County’s average rent also fell to $2,081, down 0.9% from a year earlier. Its vacancy rate fell, dipping to 3.8%.
Orange County
With 12 Closed Sales for Orange County multifamily last week Orange County sales activity stayed on par with recent weeks of activity. Almost half (5) of the Closed Sales were purchased All Cash. With 14 New Listings, the Total Number of Active Listings remained about the same as the last few weeks at 164 Active Listings. Active Listings Dollar Volume has dropped over the last 3 weeks to $529,761,821.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
Long Beach
Long Beach multifamily had only 1 Closed Sale last week. This is down from the typical amount of approx. 6-9 Closed Sales. This is probably a one-week anomaly as I don't see sales remaining this slow heading forward. All other market stats are about the same with Active Under Contract Last Week and Pending Listings Last Week at normal levels. The Total Number of Active Listings also remained consistent with 124 Active Listings and Months of Inventory remained the same at 6 months.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
Los Angeles County
Los Angeles County multifamily had 61 Closed Sales last week which keeps sales activity consistent with most of the prior weeks. With 1,732 Total Number of Active Listings, the overall inventory level crept up slightly. Active Under Contract Last Week and Pending Listings Last Week combined saw a big increase from the prior week with 27 additional listings entering that phase of the sale process for those two stats.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
San Diego County
With 11 Closed Sales Last Week Sand Diego County multifamily activity was consistent with most prior weeks' activity. Out of the 11 Closed Sales, 2 transactions used VA financing for the purchase and there were no All Cash transactions last week. Closed Sales - Average Days on Market remained low at just 42 days. The listing inventory stats remained consistent with prior weeks as all listing stats were just about at average levels for the week.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
Riverside County
Riverside County multifamily Closed Sales have ticked up slightly over the last 3 weeks with 6 Closed Sales Last Week. That's up from 3 Closed Sales 2 weeks ago and 5 Closed Sales 1 week ago. The Total Number of Active Listings is down to 102 Active Listings from the prior weeks 123 Total Number of Active Listings.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
San Bernardino County
San Bernardino County multifamily sales were consistent with 7 Closed Sales Last Week. The only increase was in Closed Sales - Average Days on Market stat which was up fairly significantly to 132 Days on Market. The normal amount is around 45 days or less. The Closed Sales - Average Days on Market increase was most likely due to one listing being on the market for 610 days. The Months of Inventory was up slightly from 10 Months of Inventory to 11 Months of Inventory.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
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