Despite the continuing effects of the COVID-19 pandemic, the multifamily sector in Los Angeles remained a robust and reliable investment for both local and out-of-state investors in 2021, propelling value growth and cap rate compression. Almost every market in the metro area experienced positive gains, especially in occupancy growth. Vacancies trended down since peaking in 2020, recording at 3.6 percent at year-end. With ample available funds coming to the market, along with the expectations that the Federal Reserve will inevitably start raising interest rates, these factors will drive investment in multifamily real estate higher in 2022.