Market Report San Gabriel Valley Multifamily
The San Gabriel Valley submarket has seen modest growth in its market fundamentals, with vacancy rising from 2.1 percent to 3.6 percent as a result of new units being added. Additionally, the softening occupancy has come waning rent growth, which peaked in the summer of 2022, at roughly $2.35 per square foot. Construction has picked up the pace and several larger communities, all near public transportation, are anticipated to deliver in the near term. Los Angeles County residents enjoy the San Gabriel Valley due to its relative affordability and larger units. The community attracts many families looking to move into LA, but at a lower price point. The pricing in San Gabriel Valley is below the market average on a per square foot basis, however, cap rates are on par with the rest of the county.
Highlights
- The San Gabriel Valley reached $756 million in multifamily sales volume in the past 12 months.
- 2022 had the most units added in a 12-month span in many decades with 1,200 new units delivered.
- Average asking rents are $1,900/month.
- The San Gabriel Valley is the largest apartment submarket in LA, with north of 65,000 market-rate units.
“The San Gabriel Valley offers a diverse community with affordable multifamily pricing compared to the Great LA metro, attracting many families.”
Vacancy, Rent, Construction
The vacancy rate in San Gabriel Valley recently increased as a result of new deliveries in the market, recording at 3.6 percent, which is just below the market’s average of 3.9 percent and above LA county’s average of 3.2. Of the 1,200 units brought to market, 850 were Class A communities, which represents a 30 percent increase in submarket apartment inventory. The submarket attracts residents due to its affordability and high proportion of two-bedroom or higher units. Less than 40 percent of San Gabriel Valley’s housing units is renter-occupied, compared to LA’s housing, which is 50 percent occupied. Average asking rents in the submarket are up 2.9 percent, peaking in July 2022. During the past 10 years, average asking rents are up 49.1 percent, compared to the Greater LA apartment market, which is up 36.7 percent. Currently, the San Gabriel Valley has 1,900 units underway. The two major communities anticipated to be move-in ready by the end of 2023 are Alexan Monrovia, the 436-unit development with 798-space parking, and Grapevine Advisors’ Aston at Gateway, which will add 215 units. Grapevine is a part of the El Monte Gateway Project, which is a master-planned mixed-use community adjacent to the LA Metro El Monte Busway Station. The entire project calls for 1,800 new housing units, in addition to 500,000 square feet of retail space.
Sales
Market pricing per unit in the San Gabriel Valley is $380,000, which is 10 percent below the LA metro average. Major sales in the past 12 months include an 85-unit community, South Hills, for $38.25 million and Atrium at West Covina for $48.6 million. In the past 12 months, the submarket saw a total of $756 million in sales, a large jump compared to its historical average of $462.8M.
By The Numbers
- Units Delivered (12 Months) 1,300 units
- Units Under Construction: 1,900
- $380,000 average price per unit
- Sales Volume (12 Month) : $756M
- Sales Comparable: 116
- Average Asking Rent % Change YOY: 2.9
- Average Vacancy % Rate % Change YOY: 1.3
