DALLAS, TX--(Marketwired - January 23, 2015) - The year 2014 was the Los Angeles apartment market's strongest since before the Great Recession, according to Axiometrics, the leader in apartment market research and analysis.
Year-to-date (YTD) effective rent growth in the Los Angeles-Long Beach-Glendale Metropolitan Division was 6.3% in December 2014, some 219 basis points (bps) above the 4.1% recorded for 2011, the previous post-recession leader.
"Supply and demand are the reasons for the boom year," said Stephanie McCleskey, Axiometrics Vice President of Research. "Los Angeles developers have been modest in their construction plans. They correctly forecasted that job growth wouldn't reach the level of Northern California and that demand has not required the number of new units being built elsewhere in the nation."
L.A's winning YTD performance was solidified by a strong December. Annual effective rent growth was 6.5% in December, 85 bps higher than November's 5.6% -- an unusual rise during a month that usually sees seasonal moderation. The December 2014 rate is 309 bps above the 3.4% of December 2013.
Average monthly rent in Los Angeles was $2,002, up $125 from one year earlier. L.A.'s occupancy was 95.8%.
Annual effective rent growth also increased in the Santa Ana-Anaheim-Irvine (Orange County) Metropolitan Division, to 5.0% in December, the first time it reached that milestone since February 2012. December's figure was a 48-bps increase from November's 4.6% and a 277-bps rise from the 3.3% of December 2013. Average Orange County rent was $1,847 in December, and occupancy was 96.0%.
Meanwhile, the rent-growth rate decreased in the Oxnard-Thousand Oaks-Ventura and Riverside-San Bernardino-Ontario (Inland Empire) Metropolitan Statistical Areas. Oxnard's 6.7% annual effective rent growth, while quite robust, was 68 bps lower than the 7.4% of November -- but 332 bps higher than December 2013. The Inland Empire's December rent growth of 5.4% was 14 bps lower than November's 5.6% -- but 143 bps above the 4.0% of December 2013.
Oxnard's average rent was $1,750 per month with 95.7% occupancy, while the average Inland Empire renter paid $1,292 in rent. Occupancy was 95.5%.
About Axiometrics
Axiometrics improves property and portfolio performance for apartment investments. Confident investment decisions begin with reliable, timely information. No one has more accurate, detailed, and up-to-date research on the apartment and student housing markets. To learn more visit www.axiometrics.com, follow @Axiometrics or on LinkedIn, or call 214-953-2242.
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Contact:
Ross Coulter
214-394-5538
ross@mpdventures.com
