Los Angeles Real Estate Investors
The rental market has always been strong in Los Angeles. Let’s face it, the barrier to entry has always been high, inventory is generally low and much of Los Angeles’ population is transient. All these factors make Los Angeles a hot rental market and a real estate investor’s paradise? But the best rental market in the United States? Surely not.
Yes.
According to recent studies, rents in Los Angeles County are now 5.9 percent above their highest point in the pre-recession years. This is partly due to homeowners reentering the rental market for one reason or another and a shortage of apartment development over the last few years. After all, high demand and short supply means higher prices.
In addition to some of the highest rents in America, Los Angeles County also has the largest percentage of renters. According to the Joint Center for Housing Studies’ recent report, 52 percent of Los Angelenos were renters – significantly higher than the national average of 35 percent.
There is some debate on the long-term effects of such a high percentage of renters and high rents on the local economy, but at the moment, real estate investors in Los Angeles – especially those with luxury properties — are reaping the benefits.
How long this situation last is anyone’s guess. Eventually the market will catch up with the demand, and new apartment buildings and short-term rentals will come on the market, driving the prices back down, but right now is an ideal time to invest in the Los Angeles County rental market. Savvy investors are realizing significant profits renting LA real estate and vacancies are low.
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Susan Andrews | Estates Director
BRE License #01425843
Susan Andrews is your ultimate real estate source for Los Angeles, California and surrounding communities.
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