Ryan Vaillancourt on the LA Apartment Rental Market

In his informative piece at losangelesdowntownnews.com, Ryan Vaillancourt uses Reis data as the foundation for a discussion of the apartment rental market.  His thesis, which seems correct to me, is that the addition of new apartment units may provide some relief to renters, and some pain to landlords, as the new inventory places downward pressure on asking rents for legacy units.

Reis has always kept a close eye on new construction because we have observed that new inventory can dramatically shift the competitive position of existing properties. This is especially true in the apartment sector, where the relatively short leases contribute to a greater responsiveness to near term economic influences.  And as Vaillancourt notes, Los Angeles has experienced new construction at a robust pace during the recent months.

In the downtown submarket, which is the primary subject of Vaillancourt’s article, the net effect is a decline in average rents, which Reis expects to finish 2010 down one percentage point, after falling 5.4% during 2009.

Of course, Reis subscribers don’t have to wait for journalists to reveal these important facts.  For access to this data as soon as we publish it, consider taking advatage of the free trial offer at www.reisreports.com.  On this blog, we’ve avoided making overt pitches for ReisReports, but the welcoming reception among appraisers, brokers, developers, and local lenders suggests that more of you might want to know about it.

ReisReports provides you the information you need to help you better understand your local market for office, apartment, and retail properties.  ReisReports gives you access to:

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Give it a test run for free, and if it’s not what you’re looking for just send us an email and we’ll cancel it for you.