Real Talk 2
October 18th, 2007 by Emmanuel CervantesIn my “Real Talk” posting earlier this month, I talked about how the multi-family sector of real estate remains strong and how the slow residential market has created an influx of “Tenants,” thereby increasing the demand for rental housing and increasing the average rents.
Owners of multi-family properties are reaping the benefits of current market conditions. High prices and tight restrictions are forcing people to rent, while foreclosures and condo-conversions have displaced many occupants. The vacancy rate in Los Angeles is lower than ever and the cost to rent has continued to increase. Multi-family owners are in a great position.
This morning I came across an article in the Los Angeles Times, entitled “Rents on the Rise as Housing Prices Slip.” This article reinforces what I said in my posting “Real Talk.” If you can afford to purchase more multi-family units, do it! If you do not own multi-family units, you should!
“While homeowners were being stung by shrinking property values, renters across the state found themselves having to dig deeper into their pocketbooks in the third quarter, according to a report to be released today.”
“The average rent at larger apartment complexes in California increased 5.6% to $1,413 compared with a year earlier, according to a survey by Novato, Calif.-based research firm RealFacts. Los Angeles and Orange counties remained the state’s most expensive market for rentals, while the San Francisco Bay Area posted the highest rent increases — as high as 12.2% in Santa Clara County.” - Los Angeles Times. (Full Article)