However, don't get too excited and expect these new rental units to remain affordable. According to a report from Marcus & Millichap, rent will increase in these new units. Along with that, the number of vacancies would also go up in this region this year.
According to this commercial brokerage firm, one should expect a 6.3% increase in rent this year. Rental in this region is expected to go to about $2200 a month. This increase in rental charges is mainly because of all the luxury units available in the market. This tends to bump up the rental rates for the neighborhood and region as a whole.
The Los Angeles Business Journal also stated that the confidence that people always have with housing in this region can also cause this continuing rise in rental charges. They trust that even with the hike in rental prices, there still will be a demand filled in the Los Angeles region.
The number of vacancies is also expected to go up by 5.2%. This is mainly due to the huge rise in the number of multifamily units that are being built in this area.
According to this report, Downtown LA and the Mid-Wilshire neighborhoods would see a large number of housing units. This study also mentioned that there will be about 53,000 new workers in LA this year. That would be an increase of 1.2% from last year.
You can also expect new apartments in Hollywood, Marina Del Rey, and Glendale in the near future. The number of vacancies, however, would be lower at a maximum of 4 percent. This is because the rent in these regions would be lower than other parts of the Los Angeles county, according to Neil Shekhter, founder, and CEO of Santa Monica-based NMS Properties.
Private investors are also more likely to move over to less common areas like Glendale or Pasadena, as they expect better yield and good employment hubs in these areas. Regions like Santa Monica will carry on and attract institutional investors. The low supply and high demand in this region, also known as Silicon Beach market, keep this region constantly competitive and hot. The vacancy rate in this region usually is under 3 percent, Neil Shekhter notes.
Therefore, while the housing situation in Los Angeles might get easier, it isn't going to get any more affordable or inexpensive. However, this could ease the increasing housing demands in Los Angeles.
Launching NMS Properties in 1988, Neil Shekhter assumed the role of CEO in January 1995. The real estate management company focuses on multi-family and mixed-use properties in the Greater Los Angeles area and in Santa Monica. At present, NMS properties manage more than 70 properties.
Over the course of 2017, NMS deployed 40 furnished units in Los Angeles, and Neil Shekhter plans to triple that number in 2018. The company currently manages some of its properties while testing a pilot with MY SUITE.
Neil Shekhter - Founder and CEO of NMS Properties
Apartments For Rent In Los Angeles NMS Residential: http://www.nmsresidential.com
NMS Properties - Real Estate Management Firm: http://www.nmsproperties.com
Contact Information: info@NeilShekhter.com
SOURCE: NMS Properties, Inc.
