Downtown LA vacancy rate hits 17-year high (Los Angeles, Torrance: real estate, 2013)

[jm1982]

Kind of surprising since downtown la seems so hot these days .

Vacany rate is 12 percent while in the rest of the city it's 4 percent .



--

Waves of new fancy apartments in Downtown LA have helped bring the neighborhood’s vacancy rate to its highest level in nearly two decades. It’s now 12 percent—the highest recorded by real estate data firm CoStar since 2000, KPPC reported today.

With so many available units, building owners are offering lavish perks, from six months of free rent to one year of free parking to try to lure tenants. The median price of a one-bedroom in DTLA is about $2,500 per month, according to rental website Zumper.

https://la.curbed.com/2017/9/15/1631...ancy-rate-rent

[adr3naline]

This is good. Supply appears to be pacing if not outpacing demand. We can only hope the rest of LA takes note.

[jm1982]

Originally Posted by adr3naline

This is good. Supply appears to be pacing if not outpacing demand. We can only hope the rest of LA takes note.

It will be interesting to see what happens in downtown la . Sounds like it is more of a renters market now but I guess most of the available units are luxury .
I know in NYC something similar has been happening a lot of newer luxury units coming on the market and prices have supposedly dropped .

It doesn't mention that rent prices have gone down in DTLA but I could see that coming next if they don't start filling up units .

Some of the developers / investors might be in trouble if they made their calculations on rent always going up.

[JohnG72]

It's too expensive.

In Torrance, which is one of the most affordable "nice area good schools low crime" parts of Los Angeles metro, this is the latest in the year I've seen so many for rent signs. Additionally parking has become a beast since so many units are being rented to multiple adults. Even at $1400-1500 for a 1 bd and $1700-2000 for two bedrooms, the rents are more than the demand.

So it's no wonder DTLA with so many new buildings, insane asking prices, and marginal ability to have roommates, is experiencing high vacancy rates. That $2500/mo average rent requires an income over $100k...that's $30k a year in rent and a person making $100k takes home about.$60k in Los Angeles.

[Finper]

maybe people don't want to pay 2500,00 plus a month to live in zombie land/third world country conditions surrounded by some of the worst traffic in LA.... I certainly wouldn't....

[adr3naline]

Originally Posted by jm1982

It will be interesting to see what happens in downtown la . Sounds like it is more of a renters market now but I guess most of the available units are luxury .
I know in NYC something similar has been happening a lot of newer luxury units coming on the market and prices have supposedly dropped .

It doesn't mention that rent prices have gone down in DTLA but I could see that coming next if they don't start filling up units .

Some of the developers / investors might be in trouble if they made their calculations on rent always going up.

We have our own DTLA magazine which just this past week outlined each development and their respective units, and showed most of the units being built are apartments and not condos. This only perpetuates LA's problems with cost of rent.

Originally Posted by Finper

maybe people don't want to pay 2500,00 plus a month to live in zombie land/third world country conditions surrounded by some of the worst traffic in LA.... I certainly wouldn't....

Depends where you are. Little Tokyo, sure. South Park is a completely different bag. Being in the city's center of public transit, many of us don't commute via car. I walk 3min to my office and wife takes the Expo.

I'm not saying DTLA is paradise on earth, but as a resident I feel my actual experiences conflict with the majority of perceptions still lingering out there. I enjoy living/working DT.

[disgruntled la native]

Originally Posted by Finper

maybe people don't want to pay 2500,00 plus a month to live in zombie land/third world country conditions surrounded by some of the worst traffic in LA.... I certainly wouldn't....

Yep. DTLA Is the most overrated part of LA

[Finper]

Originally Posted by adr3naline

We have our own DTLA magazine which just this past week outlined each development and their respective units, and showed most of the units being built are apartments and not condos. This only perpetuates LA's problems with cost of rent.



Depends where you are. Little Tokyo, sure. South Park is a completely different bag. Being in the city's center of public transit, many of us don't commute via car. I walk 3min to my office and wife takes the Expo.

I'm not saying DTLA is paradise on earth, but as a resident I feel my actual experiences conflict with the majority of perceptions still lingering out there. I enjoy living/working DT.

The last time I was in Downtown LA we toured the old theaters on Broadway. Walking there with a big group we see a black lady swinging a cane like a bat at another black guy screaming that he touched her. It forced us to the street to walk around her where we had to dodge busses. I'm glad that area is working for you they can use all the normal successful people they can get but I don't need that kind of stress in my life

[jm1982]

Originally Posted by adr3naline

We have our own DTLA magazine which just this past week outlined each development and their respective units, and showed most of the units being built are apartments and not condos. This only perpetuates LA's problems with cost of rent.



Depends where you are. Little Tokyo, sure. South Park is a completely different bag. Being in the city's center of public transit, many of us don't commute via car. I walk 3min to my office and wife takes the Expo.

I'm not saying DTLA is paradise on earth, but as a resident I feel my actual experiences conflict with the majority of perceptions still lingering out there. I enjoy living/working DT.

Yeah it seems like it's mostly Apartments. I guess there must be more demand for rentals / apartments versus condos in downtown ? Or maybe the city makes it easier to develop Apartments versus condos.

I believe I heard of some condo buildings that ended up being Apartments during the crash.

I can see how DTLA isn't for everyone but I can also see the appeal these days with transit and the thriving restaurant /nightlife scene, amenities etc

[JohnG72]

You guys are funny. I lived in DTLA from 2010-2013. It was fantastic then, even better now. If I was still single I'd still be living there.