OC Apartment Brokers
SoCal Multifamily Sales Pulse -August 1, 2021 - August 7, 2021
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Here's What's Happening In The Market, Here’s What This Means For You
Los Angeles Apartment Dwellers Owe $3B in Back Rent
A new study from UCLA and USC found that tenants with rent debt in Los Angeles owe an average of $2,800 per tenant.
The UCLA/USC study surveyed 1,000 households to examine the accumulated rent debt, and found that nearly half of the households had difficulty making rent payments through the pandemic. Overall, 49% of tenants said that they owe some amount of money to their landlord, and among those that owe back rent, 20% owed less than a month's rent and 15% owed more than six months in total rent debt.
The current approach to rent assistance, which repays the landlord directly, falls short of helping many tenants that struggled through the pandemic, namely those that went into other forms of debt after prioritizing rent payments. Economists say that the commonsense solution is to give people cash directly to help people that are financially distressed make payments where needed. Concerns over fraud have kept this model from moving forward, but the study supports the concept, saying that the actual rate of fraud is less than 5%.
Orange County
Orange County multifamily had 13 Closed Sales Last Week. Out of the 13 closed sales, 8 were duplexes. Typically, 9 of the 13 closed sales were located in coastal cities. The Closed Sales Average Days on Market remained about normal at 39 days. 8 of the 13 closed sales Sold At or Above the Asking Price. One sale of note was an 11 unit building on Warner in Huntington Beach built in 1988 that sold at $5,895,000. That’s $531,818 per unit.
Orange Counties Absorption Rate moved up from 1.9 months previously to 2.63 months currently. The Average Cap Rate went from 4.22% to 4.38% currently and the Average Gross Multiplier went from 14.95 to 14.75.
The Total Number of Active Listings moved up to 166 listings. Months of Inventory remained at 4 months but with 166 Total Active Listings that’s the highest number of currently active listings in Orange County in about 3 months. Active Listings, Dollar Volume moved up also to over $542,000,000. So we're seeing a bit of an increase in inventory in Orange County.
List of Closed Sales
Live MLS Link SALE OF THE WEEK
Southern California
Long Beach multifamily had 11 Closed Sales Last Week. That’s up from 6 the prior week and is about average for Long Beach weekly sales. The Closed Sales - Average Days on Market was just 19 days as the majority of the sales occurred in just 15 days or less. 8 out of the 11 closed Transactions Sold At or Above Asking Price.
The overall Absorption Rate jumped up to 3.21 months after being at just 1.95 months previously. The Average Cap Rate was unchanged and the Average Gross Multiplier went from 14.28 to 14.17.
Listing inventory last week was the same as the prior week with 106 Total Number of Active Listings. Months of Inventory moved down to 5 months after being at 6 months the prior week.
List of Closed Sales