Tenants in older buildings could face more rent hikes as investors bid prices per unit higher and higher.
Apartments are a hot commodity, and not just in the Inland Empire. Following a year in which the pandemic sent the industry into a tailspin, sales are rebounding throughout Southern California, pushing up prices.
Demand for multifamily properties jumped 34% to 1,721 transactions in Los Angeles, Orange, Riverside and San Bernardino counties during the first nine months of 2021, figures from CoStar show. And with prices soaring, total dollars spent buying these complexes increased 69% to almost $9.8 billion this year so far.
With rent up and vacancies down, apartments are a safe investment, brokers and investors say. Low interest rates and the need to put pent-up capital to work also are motivating buyers.
Meanwhile, sellers are capitalizing on high prices, cashing out while it’s still possible to take advantage of tax benefits threatened by proposed Biden administration reforms.
Provided by Jeff Collins with Orange County Register.