Rising Oil Prices May Affect Multifamily Demand

LOS ANGELES—Oil/gasoline prices have risen sharply over the past several months, and with no end in sight to the political turmoil in the Middle East, the upward trend is likely to continue. So says the 2012 Casden Multifamily Forecast from the University of Southern California Lusk Center for Real Estate. But that should bode well for “multifamily product closer to the economic centers of Southern California,” says USC Casden Forecast author Tracey Seslen.

According to Seslen, “farther-flung submarkets such as the Antelope Valley of Los Angeles or Outer Riverside/San Bernardino may see declining rents as residents move closer to their workplaces and attempt to lessen the cost of their commute.”