The Westside, heading from Downtown to the Pacific Ocean, is the most affluent section of Los Angeles County. Northern sections such as the San Fernando Valley and Tri-Cities area mix affluent and middle-income communities. Southern and eastern sections of the county are less well off. Downtown has been the location of a recent condominium and apartment development boom, beginning with the reuse of older office buildings and shifting to new construction.
Westside
- The 41,030-unit Beverly Hills submarket has a vacancy rate of 2.4% in the second quarter of 2012, fifth lowest among 37 Los Angeles County submarkets, and an average asking rent of $1,887 per month, the fourth highest, according to data compiled by Reis. With a shortage of affordable housing in Los Angeles, most other low vacancy submarkets are low rent areas.
- The vacancy rate fell 20 basis points in the second quarter and is down 110 year-over-year. Rent gains were again strong, with the average asking rent up 1.7% for the quarter, and the average effective rent up 2.1% to $1,855 per month. The year-over-year gains were 3.3% and 4.4%, respectively.
- Marcus & Millichap reports a 2.7% vacancy rate in its Beverly Hills/West Hollywood submarket, and an effective rent of $1,803 per month, up 4.9% year-over year.
- The 478-unit Wilshire La Brea broke ground in late 2011 for completion in early 2014. This submarket has 770 apartment units under construction.
- In the 36,097-unit West Los Angeles/Brentwood/Westwood submarket, the vacancy rate is 3.9% and the average asking rent is $2,237 per month, the second highest countywide, Reis reports. Marcus & Millilchap reports vacancy here at 3.7%, and an effective rent of $2,140 per month, up 4.9% year-over-year.
- The vacancy rate is unchanged for the second quarter, but is down 60 basis points year-over-year. The average asking rent increased 0.6% and the average effective rose 0.7% to $2,160 per month. The year-over-year gains are 2.1% and 2.5%, respectively.
- A 59-unit building at Village Bel Air completed construction at 130 S. Sepulveda Boulevard in January. Two buildings with 114 units remain under construction.
- The average asking rent in the 18,300-unit Santa Monica submarket, at $2,378 per month, is once again the highest in metro Los Angeles, according to Reis. The second quarter vacancy rate is 3.4%, up 10 basis points for the quarter but down 10 over 12 months.
- Rent gains were modest here during the second quarter, with the average asking rent up 0.2%, and the average effective rent up 0.4% to $2,264 per month. The asking and effective averages are up 2.4% and 3.0% from a year earlier.
- In February, the 318-unit The Village at Santa Monica, with 158 market rate units, broke ground at Ocean Boulevard and Pico Avenue. The expected completion date is August 2013. A project with 39 units is also under construction for completion in 2012, while 94 units are under construction at 501 Colorado Avenue.
- Marcus & Millichap reports a 2.7% vacancy rate in Santa Monica, down 80 basis points year-over-year, and an effective rent of $2,218 per month, up 4.3%.
Central Los Angeles
- The 14,065-unit South/Central Los Angeles submarket has a vacancy rate of 2.9% and an average asking rent of $919 per month, again the second lowest recorded by Reis.
- In the second quarter the vacancy rate decreased 20 basis points; it is down 50 from a year earlier. The average asking rent rose 0.4% and the average effective rent increased 0.5% to $897 per month during the quarter. The year-over-year increases are 2.6% and 3.1%, respectively.
- For the 44,732-unit Wilshire/Westlake submarket, Reis reports a second quarter vacancy rate of 3.7%, unchanged over the quarter, and an average asking rent of $1,244 per month, up 1.0% for the quarter.
- The average effective rent rose 1.1% to $1,224 per month. The year-over-year gains are 3.8% and 4.1%, respectively.
- In the 9,301-unit Downtown submarket, the vacancy rate is 5.5%, third highest among the submarkets, and the average asking rent is $1,853 per month, the fifth highest according to Reis.
- The vacancy rate is unchanged from the prior quarter but it is down 170 basis points from a year earlier. The average asking rent decreased 0.1% over the quarter and the average effective rent rose 0.1% to $1,770 per month. The respective year-over-year gains are 2.4% and 3.3%.
Marcus & Millichap reports a Downtown effective rent of $1,729 per month
- Downtown is an active building market. Reis reports five projects totaling 600 units have completed so far in 2012, led by the 222-unit Roosevelt Lofts, which completed in July 2012. The 204-unit Huntington Apartments completed construction at 752 S. Main Street in January. This left four projects with 965 units under construction, including the 350-unit One Santa Fe which broke ground in January.
- The 52,092-unit Hollywood/Silver Lake submarket has a vacancy rate of 2.9% and an average asking rent of $1,465 per month, Reis reports.
- The vacancy rate fell 20 basis points during the quarter and 120 from a year earlier. Rent gains have picked up here. The average asking rent is up 0.8% for the quarter and 2.7% year-over-year, and the average effective rent, at $1,418 per month, is up 1.1% and 3.4%, respectively.
- Development is active here as well, with the 1,035-unit Boulevard 6200 Apartments under construction, along with four other projects, totaling another 446 units.
- For the 44,320-unit Sherman Oaks/Studio City/North Hollywood submarket, Reis reports a second quarter vacancy rate of 3.7%, and an average asking rent of $1,547 per month.
- The vacancy rate fell 40 basis points in the second quarter, as the average asking rent increased 0.4% and the average effective rent rose 0.5% to $1,516 per month. Compared with a year earlier, the vacancy rate is down 90 basis points, the asking average is up 2.0%, and the effective average is up 2.7%.
- There are four projects with 382 units under construction in this submarket. For its Sherman Oaks/Studio City submarket, Marcus & Millichap reports vacancy at 3.5%, down 100 basis points year-over-year, and an effective rent of $1,505 per month, up 5.4% over that time span.
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San Fernando Valley/San Gabriel Valley
- The 14,250-unit Arcadia/Duarte/El Monte submarket has a vacancy rate of 4.1%, according to Reis, and an average asking rent of $1,161 per month.
- The vacancy rate is unchanged from the prior quarter, and down 80 from a year earlier. The average asking rent increased 0.5% and the average effective rent rose 0.7%, to $1,154 per month, from the prior quarter. The asking average is 2.8% higher than a year earlier, with the effective average up 3.3%.
- For the second quarter of 2012, Reis reports a 3.9% vacancy rate and a $1,653 per month average asking rent for the 19,583-unit Pasadena submarket, both unchanged from the prior quarter. The average effective rent increased 0.3% over the quarter to $1,584 per month. Year-over-year asking and effective gains are 3.1% and 3.9%.
- Marcus & Millichap reports Pasadena vacancy at 3.6%, and an effective monthly rent of $1,596, up over 8.2% year-over-year.
- The 23,406-unit South Glendale/Highland Park submarket has a 3.3% vacancy rate, and a $1,275 per month average asking rent, according to Reis.
- The second quarter saw the vacancy rate fall 10 basis points as the average asking rent increased 0.8%, and the average effective rent rose 1.0% to $1,259 per month. The vacancy rate is down 40 basis points year-over-year, with the asking and effective averages up 1.8% and 2.0%, respectively.
- In the 17,700-unit Burbank/North Glendale submarket, the vacancy rate is 4.2%, and the average asking rent is $1,500 per month, according to Reis.
- The vacancy rate decreased 40 basis points during the second quarter, while the average asking rent rose 0.8%, and the average effective rent rose 1.0% to $1,445 per month. The year-over-year gains are 1.6% asking and 2.2% effective.
- Marcus & Millichap report a 4.5% vacancy rate for Burbank/North Glendale, down 170 basis points year-over-year, and a $1,405 per month effective rent, up 2.7% over that time span.
- For the 15,756-unit Azusa/Covina/Glendora submarket, Reis reports a second quarter vacancy rate of 4.1%, and an average asking rent of $1,165 per month.
- In the second quarter the vacancy rate increased 20 basis points, the asking average rent rose 0.5%, and the average effective rent increased 0.6%, to $1,142 per month. The vacancy rate is down 60 basis points year-over-year, with the asking and effective rent averages up 1.0% and 1.6%.