Much More Competition for Los Angeles Landlords in 3 years

Low vacancies and rent increases have encouraged apartment developers in Los Angels to break ground on new apartment buildings. Unfortunately, the long City approval process and financing concerns delay the start date of these projects.  Therefore, the surge is felt  more by architects and City planners than anyone else.  Eventually, we will see cranes, steel, and lumber coming from the ground.  Jim Silton, n veteran of many cycles  in his Spring 2013 newsletter writes:

“Let me illustrate what occurred in the 80s.  One of the first new apartments built in Westwood was on the northwest corner of Ohio and Veteran;   it attained rents higher than any other building at that time, which opened the floodgates for new construction.  This lead to overbuilding.  By the end of the decade, maNy of these units went un-leased, pressuring landlords to give rent concessions.So is history repeating itself? Of course it is….that’s what real estate is all about–CYCLES.”

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