As cities reassess their downtown strategies in the wake of hybrid work (over fully-remote), few have seen a more dramatic decline than Los Angeles. According to our new Downtown Construction Report, only 19.1% of new apartments built in L.A. between 2020 and 2024 were located in the downtown area — down from 50.5% in the previous decade. That’s one of the steepest declines in downtown-focused development among the 50 largest U.S. cities we analyzed. Despite the shift, adaptive reuse continues to play a notable role in shaping the city’s downtown housing. Converted buildings accounted for 14.5% of new downtown…
Author: Rent Cafe
The number of apartments converted nationwide from office buildings reached a record high of 70,700 units and these conversions are also increasingly targeting newer office buildings. The office-to-apartment conversion niche is expanding across California as well, but not exactly where most would expect. While Los Angeles leads this transformation, several smaller cities, including Long Beach and Goleta, are converting more office space into housing than major hubs like San Francisco and San Diego. Here’s a breakdown: Across the state, 16,236 apartments are in the pipeline, with 5,892 units coming from repurposed office buildings. Los Angeles leads the state with 2,923 future apartments coming from office conversions, the highest in California. Long Beach follows with 424 apartments set to be converted from…
Rental market data from the past 12 months reveals significant pressure across the Los Angeles metro area. Eastern LA emerged as the most competitive renting spot, with 15 prospective renters applying for each available apartment and a 95.9% occupancy rate. Northern LA follows with 11 renters competing for each vacant one and a 95.0% occupancy rate, while available apartments in Western LA attract 9 potential renters amid an occupancy rate of 92.6%. The situation intensified as new construction declined across all areas compared to 2023, with Eastern LA experiencing the sharpest decrease — from 1.93% to 1.20% in new apartment development. Additionally, more renters opted to renew their leases, particularly in Eastern LA again, where renewal rates increased substantially from 44.8% in 2023 to 52.9% in 2024. These combined factors (high occupancy, dwindling construction, and increased…
This month’s Rental Activity Report highlights Los Angeles, which has climbed two spots this month to rank #10 nationally for rental activity. This jump reflects the city’s endurance as a rental hotspot, despite broader market challenges. Here’s what’s driving renter interest in Los Angeles, based on millions of interactions of RentCafe.com: While page views dropped 6% year-over-year, renters on RentCafe.com acted swiftly they found a rental they liked. This is evident from the 24% drop in saved searches and favorited listings, signaling quicker decision-making. Most of the demand for apartments in Los Angeles comes from locals, mostly East Los Angeles, Inglewood, CA, and even New York City. The West claims six cities in the top 30, with Los Angeles leading at #10, followed by Spokane,…
Eastern Los Angeles has seen the largest year-over-year jump in rental competitiveness, soaring from 25th place to break the top 20 at the start of this rental season to rank ninth. This dramatic rise is primarily due to a sharp increase in lease renewals (from 42.1% one year ago to 52.7% now). Whether you’re adjusting your budget (or expectations) or searching for hidden gems with less competition among renters, our Rental Market Competitiveness Report sheds light on where it’s easier or harder to secure an apartment across the U.S. Other notable California markets include Silicon Valley at #6 and Orange County at #8. What’s making Eastern L.A. rental market so hot this…
Over 5,800 apartments are projected to be developed through adaptive reuse in Los Angeles, with 1,700 of these from repurposed office spaces. Our latest Adaptive Reuse Report highlights notable shifts nationwide: In 2023, hotel-to-apartment conversions led the way for the first time. Office conversions, however, showed mixed results amid uncertainties about the future of office spaces. Overall, adaptive reuse projects surged by 17.6% compared to the previous year. According to real estate analyst Veronica Grecu, while there is strong interest in adaptive reuse to generate more housing in Los Angeles, but the financial aspect remains a key hurdle in 2024. “High construction costs, interest rates, and real estate transfer taxes…
Our new study delves into historical housing costs and spending patterns in nearly 200 metro areas in the U.S. using IPUMS data. Specifically, we looked at Gen Z and Millennials and what they spend in terms of renting, as well as owning a home by the time they reach 30. Gen Zers in the U.S. will spend, on average, $145,000 on rent before turning 30, which is 14% more than what Millennials paid. In California, however, Gen Zers will encounter much higher rental expenses by age 30, reaching up to $300,000—specifically $221,754 in the Los Angeles metropolitan area. In Los Angeles, the cost of homeownership for the youngest generation in the housing…
Bucking the time-honored tradition of “flying the nest”, an astounding 68% of young Gen Z adults are choosing familial confines as opposed to independent living, thus weaving a complex narrative of economic, social, and familial ties in modern America. What’s more, Millennials aren’t far behind with 20% still residing in their parental homes. But, what does this mean for our society, economy, and the individuals involved? Digging into the data reveals a tale of generational adaptation, financial pragmatism, and evolving familial structures that are reshaping the American Dream. Our most recent analysis of IPUMS data shows that approximately 14 million Millennials and…
Apartment construction is booming across U.S. neighborhoods, with zip codes in D.C., New York or San Diego building as much as 7,000 new rentals in a short span of five years – more than entire cities did. In the LA metro, where housing is scarce, one zip code made it to the top 50 most apartment-crazed areas in the nation. Zip code 90028 (in the heart of Hollywood) built as many as 3,138 in the last five years, which translates into an increase of 36% in its supply of apartments. There are many other hotspots for apartment construction across the metro area. Here are the top 10: In the 90028 zip code of Los Angeles proper, 3,138 new apartments were built between 2018 and 2022, bringing the total number of rental units in the area to 11,631. This represents a growth of 36.9% in supply. Next in Los Angeles is zip code 90015, which welcomed 2,676 apartments during…
Bridging the past and present, adaptive reuse projects highlight buildings’ endless potential for reinvention. According to RentCafe’s recent analysis of adaptive reuse projects across the U.S., office-to-apartment conversions made up the highest share of repurposing projects last year (33.6%), followed by hotels (29.3%) and factories (12.3%). The study also looked at future trends in this sector. The latest findings reveal that New Orleans is expected to add around 750 new rentals to its local market via several repurposing projects. The data indicates that office conversions in NOLA will account for most of these new apartments, with an estimated 430 units.…
RentCafe’s newly released Apartment Construction Report revealed that 2023 is shaping up as a new peak year for construction as developers are expected to unveil 460,860 rentals by the end of December. Twenty-five metros across the U.S. are projected to build more than 5,000 units each this year and Las Vegas is one of them. Here are the highlights from RentCafe’s Apartment Construction Report: 5,013 new apartments are projected to open in Las Vegas metro by the end of the year. Thatearned Las Vegas a respectable #25 spot among the busiest builders in 2023. More than three-thirds (68%) of these…