Rents are forecast to rise 3.8 percent this year, according to new HomeUnion® research report.
IRVINE, Calif., March 16, 2017 – HomeUnion®, an online real estate investing platform, has announced that Los Angeles is one of the best investment markets in the nation, based on demand. “Stellar job growth, and one of the lowest vacancy rates in the country have combined to make Los Angeles one of the most constricted markets in the country,” explains Steve Hovland, director of research at HomeUnion®. “The metro is on track to add 90,000 new jobs this year. Vacancy is expected to drop below 3 percent, a level only six other U.S. markets have achieved. With strong demand and constricted supply, rent growth and prices are elevated, while cap rates remain compressed. Investors who choose to enter the market may want to focus on further-flung neighborhoods such as Inglewood and Highland Park.”
Here are some key takeaways on the Los Angeles investment housing market:
- The metro’s employment growth is projected at 2.1 percent this year, compared to 1.7 percent growth nationally.
- Single-family rental (SFR) vacancy in Los Angeles is expected to drop by 10 basis points to 2.9 percent.
- Rents for Los Angeles SFRs are anticipated to grow to $2,644 per month, up 3.8 percent from year-end 2016.
- The median sales price for investment homes in Los Angeles ended 3Q 2016 at $530,000, with 73 percent of investors choosing to use leverage.
For more information on the state of the U.S. investment housing sector and market conditions in 29 metros nationwide, download the 2017 National Single-Family Rental Research Report.
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About HomeUnion®
HomeUnion® is an online real estate investing platform. Based in Irvine, Calif., it provides all the services needed for individuals to invest remotely in single-family rental (SFR) properties. The company uses a combination of research and proprietary analytics to incorporate data on over 110 million homes and 200,000 neighborhoods into their database, and then delivers its solutions to an on-the-ground infrastructure that currently serves 11 locations. HomeUnion®’s role spans the lifecycle of the investment transaction: identifying sound investments, handling all aspects of acquisition, maximizing income, protecting asset value, and selling the asset when the time comes.
Media Contact:
Stacey Corso
Communications Manager, HomeUnion®
stacey.corso@homeunion.com
415.672.6460
