"The supply of fresh rental units, which make up the bulk of new housing in Los Angeles, is petering out despite robust demand. The vacancy rate is among the lowest in the country, while rental rates are among the highest. Still, the number of new units under construction in Los Angeles has been falling each quarter since early last year and is set to dive to a 10-year low, according to real estate data provider CoStar."
"Ari Kahan, a principal of California Landmark Group. used to have multiple projects with as many as 800 total units being built in Los Angeles at any given time. No more, he said. "We haven't bought a site with the intention to develop it in over two years," he said. "I don't know when we will be building in L.A. next.""
Riverside County recorded a 154.1% year-to-year increase in apartment completions, with many new complexes appearing along the 60, 15 and 215 freeways. Los Angeles is seeing a sharp decline in new rental supply despite strong demand, with vacancy rates among the lowest and rents among the highest nationally. The number of apartments under construction in Los Angeles has fallen each quarter since early last year and is poised to reach a 10-year low. Fewer than 19,000 units were under construction through September, about 30% fewer than three years earlier. Developers cite reduced profitability and tightened institutional financing as key barriers to building.
Read at Los Angeles Times
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