• Multifamily demand remained very strong, as evidenced by the 7,085 units absorbed in 2017, which is up by 29.9% from 2016, and up by 35.2% over the 10-year average.

  • The relatively low vacancy rate of 4.0% is unchanged from a year ago.

  • New deliveries remain at peak levels with 8,383 units completed last year.

  • In 2017, the average monthly effective rent of $2,242 was up by 0.8% from the prior year and has increased for 28 consecutive quarters.

  • Acquisitions activity is below 2015’s peak volume, but remained elevated. Even though the 2016 total of $6.9 billion was 3.6% less than last year, it was above the national decline of 6.9%.

  • Cap rates for stabilized infill and suburban assets held firm as private buyers continued to search for value-add opportunities. Multifamily cap rates in Los Angeles are some of the nation’s lowest and local CBRE professionals expect no change for H1 2018. NCREIF returns moderated from 9.4% in 2016 to 6.8% in 2017.