West Los Angeles & Venice Beach Multifamily Market Report
West LA Submarket Overview
This West LA submarket includes Palms, Mar Vista, and Culver City. Culver City is known for its historical significance in the film and entertainment industry, with several studios and production facilities established in the area. The city has popular attractions like Sony Pictures Studios, Culver Studios, and the historic Culver Hotel. Palms is situated between Culver City and Mar Vista, offering a convenient location close to major attractions and employment centers. Mar Vista is known for its abundance of parks and recreational facilities, offering residents ample opportunities for outdoor activities. West LA has been a hotspot for apartment developers in recent years, with 1,000 units under construction.
West LA Submarket Performance
The vacancy rate in this West LA submarket stands at 5.6%, surpassing long-term averages, indicating current market conditions are relatively tenant-friendly. Over the last 12 months, rent growth has declined by 0.2%. The average asking rent remains relatively high at $2,770 per month, making it one of the more expensive areas in the metro for renters. In 2023, 310 net new units were completed, offering some relief compared to the previous year, which saw the delivery of nearly 800 units.
Sales activity in 2023 fared better in the submarket compared to many locations in Greater L.A. Over the past five years, the submarket has typically seen an average quarterly sale of 16 properties worth $74 million. Asset pricing, averaging $460,000 per unit, has experienced a decline of approximately 15% from a recent peak of around $550,000 per unit in Q1 2022. Elevated debt costs are impacting both sales activity and pricing in the area.
By The Numbers | Last 12 Months | Source: CoStar Group
- Vacancy Rate: 5.6%
- Rent Growth: -0.2%
- Delivered Units: 291
- Absorbed Units: 97
- Sales Volume: $324M
Venice Beach Submarket Overview
The Venice Beach submarket includes Playa del Rey/Westchester and Marina Del Rey. Venice Beach was created as a Los Angeles beach resort inspired by its Italian namesake, complete with canals, piazzas, pedestrian bridges, a lagoon, and a colonnaded business center.
Venice Beach Submarket Performance
This Venice Beach submarket has experienced a continuous decline in occupancies in recent quarters. The vacancy rate, currently at 5.3%, has risen from a recent low of 4.2% in early 2022. Renter demand has been subdued, resulting in the absorption of -90 units over the past 12 months. Daily asking rents have decreased since reaching a peak in Q3 2023. Over the last year, rents have shifted by 0.8%, contrasting with a 0.1% movement observed across the Greater Los Angeles Apartment market. Among the metro’s submarkets, Venice Beach ranks as one of the three most expensive for renters, commanding an average asking rent of $3,290 per month.
Since 2021, there have been no significant completions in the Venice Beach Submarket, with the most recent major addition being Hanover West LA, consisting of 180 units. The current development pipeline includes 470 units underway, representing 2.2% of the existing unit inventory, with the largest projects expected to open soon.
In Q4 2023, nine buildings were sold for a total of $28.7 million. Asset pricing, averaging $500,000 per unit, has experienced a decline of approximately 15% from a recent peak in Q1 2022.
By The Numbers | Last 12 Months | Source: CoStar Group
- Vacancy Rate: 5.3%
- Rent Growth: 0.8%
- Delivered Units: 3
- Absorbed Units: -90
- Sales Volume: $59.3M
