Beverly Hills Market Report

As apartment owners in Beverly Hills, staying informed on the latest market trends and developments is crucial to the success and growth of your investment. This comprehensive Beverly Hills Multifamily Marketing Report aims to provide you with valuable insights, analysis, and recommendations to help you make informed decisions and optimize your property’s performance. In this report, we will delve into the local submarket’s vacancy rates, average asking rents, construction pipeline, and recent legislative changes that may impact your returns. By understanding these factors, you can better position your property in the competitive Beverly Hills apartment market and maximize your investment’s potential.

The Beverly Hills submarket has shown resilience with an average vacancy rate of 6.3 percent, while average asking rates have grown by 1.2 percent over the past year. In the last decade, more than 3,100 net new units have been added to the submarket, and the current construction pipeline holds 1,500 units, aligning with the average observed over the last five years (1,300 units). This pipeline accounts for 3.7 percent of the existing inventory. However, recent legislation passed in November 2022 by the City of Los Angeles and Santa Monica could impact investor returns by imposing substantial transfer taxes on properties above a certain price.

Beverly Hills commands an average asking rent of $3,270 per month, which is among the highest in the L.A. apartment market and significantly above the metro average of $2,200 per month. Although the submarket has experienced an average annual growth of 1.2 percent in the past year, the metro area outpaced it with an average annual gain of 2.8 percent.

Income

Market Rent Per Unit

90212 — $2,957

90210 — $3,480

90211 — $3,092

By the Numbers in the Past 12 Months

Units Delivered: 239

Average Vacancy Rate: 6.3%

Average Effective Rent Per Unit: $3,270

Average Effective Rent Per SF: $3.70

Average Price Per Unit: $506,000

Sales Volume: $579M

Cap Rate: 3.6%

GRM: 16.22

Employers

The most common employment sectors for those who live in Beverly Hills, CA, are:

• Professional, Scientific, & Technical Services (2,505 people)
• Health Care & Social Assistance (2,273 people)
• Retail Trade (1,172 people)

Education

Beverly Hills Unified School District contains

• 6 schools
• 3,31 students

Where/How is the City Investing Tax Dollars?

• Burton Way Median: The city plans to develop the Burton Way Median and turn it into the first Green Street in the city to comply with the Federal Clean Water Act. As part of this development, the Burton Way Median will serve as the model garden for water efficiency in the city. The garden will prioritize preserving the existing trees and public art pieces and support the City’s broader water conservation goals.
• Subway Mitigation: Development and implementation of mitigation measures to reduce the impact of the Westside Subway Extension project on the residents and businesses in the City of Beverly Hills.
• Sewer System Repairs: Repair and rehabilitation of the sanitary sewer conveyance system within the City of Beverly Hills. This ongoing project includes replacement of deteriorated sewers, relining of existing sewers and sanitary sewer manhole rehabilitation.
• Storm Water Rehabilitation Program: This CIP is to fund the repair, rehabilitation, or replacement of failed stormwater assets such as catch basins, maintenance holes, and stormwater mainlines.
• Robertson Sidewalk and Tree Replacement Project: The overgrown Ficus tree roots on Robertson Boulevard have caused damage to the sidewalk, and to repair it, the roots within 8 inches of the surface must be removed. However, the City’s Arborist has determined that removing those roots would harm the trees, so most of them will be removed to install a new sidewalk. Once the sidewalk is installed, alternating Crape Myrtle trees and Mexican Fan Palms will replace the removed trees. West Coast Arborists will perform the tree removal and planting under City supervision.
• Coldwater Canon Water Main Replacement Project: Williams Pipeline Contractors, Inc., the City’s chosen contractor, will start the water main replacement project in Coldwater Cañon Drive. The project will involve replacing approximately 7,300 feet of old distribution pipeline that is 60- 90 years old and installing around 3,000 feet of new transmission pipeline. The project will include various tasks such as surveying, potholing, trenching, shoring, and installing pipelines and other necessary items.