The South Bay and Long Beach area was the most affordable L.A. County submarket for investment and rent, according to the third-quarter Multifamily Research Market Report from Marcus & Millichap.
The area, according to the report, has been attracting investors and renters priced out of nearby markets.
The average rent increased year over year by 4.6 percent from to $1,975 per month in 2017, according to the report. Rent gains were more accelerated in Long Beach, where the average rate rose by 5.8 percent to $1,736 a month.
The Westside, on the other hand, is the area’s most expensive submarket at $2,970 per month – a 4.4 percent increase from the previous year, according to the report.
The Long Beach-South Bay area’s lower price points, value-add potential and higher yields have attracted local investors and buyers from neighboring counties. More than 900 assets traded over the past year, with most for less than $200,000 per unit, the report says.
Existing rentals are expected to benefit from a lack of new product completions this year, as only one project is expected to come online, the report says. A wave of new apartment developments is in the pipeline for next year, however, with 2,245 units slated for completion in 2018.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- Artwork Makes Its Place at Koreatown Apartments
- Investors Drop $17.4M on Two Multifamily Portfolios in Long Beach
- APARTMENTS --- Long Beach Heats Up for Apartment Builders
- Chic Retail Neighborhood Victim of Retail Slowdown
- Short Supply
- Real Estate Column---After Years Chasing Deal, Resolution in Down Market
- Report: Multifamily Projects to Rise with Rents