Van Nuys, CA Multifamily Submarket Report
Submarket Overview
Van Nuys is a neighborhood in the central San Fernando Valley region of Los Angeles and is the most populous neighborhood in the San Fernando Valley. The submarket is known for its aviation legacy and has grown into a bustling urban community. The Van Nuys multifamily submarkets continue to experience reduced tenant demand.
Submarket Performance
In the last 12 months, there was a net absorption of 27 units in the Van Nuys submarket. Rents have shown modest growth in the recent quarters, with a 1.2% increase over the past year. The vacancy rate in Van Nuys in Q1 2024 has risen to 3.3%, up from 2.9% one year ago. The average asking rent in Van Nuys is $1,770 per month, which is a 20% discount compared to the Greater Los Angeles market averages. The submarket is known for providing some of the more affordable housing options in the Los Angeles metro area. Over the past decade, Van Nuys has experienced moderate construction. This shows more activity than most areas in the San Fernando Valley. Currently, there are 310 units under construction, accounting for 1.3% of the existing units in the area. 375 units have been proposed over the next eight quarters.
In Q4 2023, property transactions amounted to $12.4 million, a decrease compared to the quarterly average of $39.3 million over the past 10 years. The increase in debt costs has impacted sales activity, and recent transactions indicate softer pricing than what would likely have been achieved in early 2022. The average market price per unit, currently at $270,000, has decreased by approximately 15% from its peak of around $320,000 per unit in Q1 2022.
Van Nuys By The Numbers | Last 12 Months | Source: CoStar Group
- Vacancy Rate: 3.3%
- Absorbed Units: 27
- Rent Growth: 1.3%
- Sales Volume: $69M
- Delivered Units: 155
