At year-end 2017, we took a look at the Los Angeles multifamily market. We noted then that Los Angeles stood as one of the stronger markets nationally, with low vacancy and high investment volume. As we look at results from the first quarter of 2018, market fundamentals remain strong, although signs of weakness continue to be observed.
Complementing the recent review of household composition and living arrangements, a closer look at householder age indicates the steady graying of small asset apartment demand.
A closer examination of household composition, including single renters and families, as well as living arrangements reveals distinct patterns across rental asset classes.
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Whether you need a small or a large loan, Arbor provides flexible and personalized multifamily and commercial financing to take advantage of the current market. We offer unique features such as interest-only provisions and the ability to work beyond your transactional or operational challenges to close on the loan that works best for your investment.
While rental housing costs remain high, the accelerated improvements in the U.S. economy have resulted in incomes that are rising slightly faster than rents.
While renters are gaining economic confidence, the issue of affordability still weighs heavily when considering a path to homeownership. According to Freddie Mac’s recent Profile of Today’s Renter report, a staggering 67% of renters consider renting as a more affordable alternative than homeownership.
As primary markets get increasingly expensive for housing, young adults at the beginning of their careers are moving into regional hubs. This movement is providing new growth opportunities for small asset investments.
