The average occupancy rate for the complexes was 95.5%, the first time this figure has been below 96% since 1997.
There can be no doubt that the recession was a major cause of this cooling, but a contributing factor was the introduction of new product into the market in 2001, according to the report. Another survey by RealFacts, The Pipeline Report, estimates there will be another 7,140 market rate units coming on line in 2002.
Only 2% of existing inventory comes from 2000; 9% comes from the 1990s; with 33% and 34% coming from the 1980s and 1970s, respectively. The percentage of existing inventory from the 1960s is 17%, and only 5% is pre-1960.
The report found that the highest rent being paid in the sub-markets was not surprisingly in Brentwood, where the average rent was $3,274 in 2001. El Monte recorded the lowest average rent for the year, coming in at $516.
The total units inventoried in the survey were 105,238. The average number of units per property was 228. The properties were all built between 1917 and 2001, with the mean average date of construction rounding out to 1977. The properties ranged in size from 70 units to 4,253.
This MSA is an interesting and strong multifamily market. Its sheer size and the diversity of its economic engines give it resilience that many other markets lack. And as a Census Bureau report, released late last year, pointed out, Los Angeles has an almost inverse relationship to homeownership than obtains in most of the U.S. In LA over 60% of its residents rent whereas nationwide the figure is 34%.
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