South Bay, Long Beach Most Affordable Multifamily Markets

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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.

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