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.
