The pandemic has significantly shifted dynamics in West Los Angeles' apartment market. Once known as one of the highest-barrier-to-entry markets in the nation, the Westside is now a buyer's paradise. Due to increased vacancy rates and low transaction volume in the last year, multifamily investors now have the upper hand in negotiations.

"Overall, West L.A/Santa Monica is one of the priciest rental markets in the Los Angeles area. Because of that, it was also the hardest hit from a vacancy standpoint as devastating job losses occurred as a result of the COVID crisis," Kimberly R. Stepp, a principal with Stepp Commercial, tells GlobeSt.com. "A significant number of renters in these areas were forced to seek out other living arrangements like sharing an apartment with more roommates; moving in with family; or seeking less expensive/less desirable L.A.-area living locations. Some were primarily focused on a search of affordable / strong employment markets such as Phoenix, Nashville, Austin, Dallas, and other metros where there are also favorable tax advantages.

In 2020, transaction volume fell 44% year-over-year, a direct result of the change in leasing demand and overall fundamentals. This has had a dramatic impact on asset pricing. "Buyers won't pay pre-COVID pricing and are looking for discounts on projected rent levels," says Stepp. "They are seeking opportunities where owners are struggling to fill vacancies in order to capture a significant discount to the pricing of 12 months ago. With a surplus of available units on the market, it is safe to say that we are now entering into an attractive buyer's market."