The Los Angeles metropolitan area has one of the lowest home ownership rates in California at 46.5 percent and well below the 62.9 percent U.S. national average.
Rising home prices and the Millennial generation’s preference to rent are some of the factors causing home ownership to decline in Los Angeles.
The big winner here is the multifamily sector. With fewer people buying, there are more renters. LA vacancy is at a historical low of 3.3 percent, half the national average of 6.7 percent, a reflection of the extremely strong demand for rental property and an indication of the market’s ability to absorb the pipeline of new development in coming years.
For more information contact Henry Gjestrum
Visit the JLL Los Angeles Research webpage for additional market insight.
Source: JLL Research, PPR Global, US Census – table 6a. Los Angeles-Long Beach-Santa Ana MSA, 2016