A Comparative Analysis: Lease Market Reports April 2022 vs April 2023
REAL ESTATE NEWS (Los Angeles, CA) — Real estate market trends are ever-changing and continually shaped by a myriad of factors. For the most reliable insights, it’s vital to compare current conditions with historical data. Today, we’ll look at the changes between the lease market reports of April 2022 and April 2023. These reports provide valuable insights into how the lease market has evolved over the year. Rent prices are up!
Number of Listings
The first noteworthy difference between the two years is in the number of leased properties. In April 2022, there were 88 listings recorded under the Leased SP and Leased LP categories. However, by April 2023, this figure had dropped to 63, representing a significant decrease of approximately 28%.
Days on Market (DOM)
In April 2022, the average DOM was 57 days, with a median of 30 days. This suggests that half of the properties were leased within a month, while others stayed on the market for almost two months on average.
Contrastingly, in April 2023, the average DOM reduced slightly to 51 days, while the median increased to 47 days. This implies that most properties were leasing in approximately one and a half months, which suggests a somewhat slower but more consistent pace of leasing compared to 2022.
Leasing Price Trends – April
2022 Leased price median $2,874; average $3,143
2023 Leased price median $3,100; average $3,429
In terms of leasing prices, we see some interesting trends. The lowest leasing price reduced from $1,850 in April 2022 to $1,300 in April 2023, providing a more affordable entry point for tenants.
On the other hand, both the highest and median leasing prices increased over the year. The highest leasing price rose from $7,520 in April 2022 to $8,500 in April 2023, marking a 13% increase, while the median price experienced a moderate increase from $2,875 to $3,100.
The average price per square foot saw a slight increase from $3.33 in 2022 to $3.42 in 2023, indicating that on average, tenants are paying a bit more per square foot than in the previous year.
SP%LP (Selling Price to List Price) Ratio
The Selling Price to List Price (SP%LP) ratio is a vital indicator in real estate, showing how much of the list price was received on average. In 2022, the overall average SP%LP ratio was 99.89% for leased SP. In 2023, this ratio experienced a slight increase to 100.06% for leased SP. This indicates that properties, on average, were leased at their listing prices or even slightly higher, suggesting a favorable market for property owners.
The comparison between the lease market reports for April 2022 and April 2023 offers intriguing insights. Despite a drop in the total number of leases signed, the leasing price exhibited a mixed trend. The lowest leasing price dropped, while the highest leasing price rose, indicating a broader range for potential tenants.
The increase in the SP%LP ratio in 2023 shows a market more favourable to property owners, despite fewer total transactions. Furthermore, the shift in DOM suggests that while properties might be taking a bit longer to lease, the process is more consistent compared to the previous year. As market dynamics continue to evolve, monitoring these trends will be critical for both landlords and tenants.
The numbers show continuation of an alarming trend: The rich are getting richer, while the poor get poorer. The middle class is generally stagnating or falling. The high-end properties perform better while the more affordable properties flounder. This is not a good sign for the middle class. It’s a warning that mediocrity is less desirable — an impetus for Loft Blog reader to work towards increasing wealth, as the middle class gets taken.
With average and median rents up significantly from the same period last year, yet fewer transactions, stagflation is alive and well. We see economic stagnation and consumer price inflation reflected in Downtown and nearby loft neighborhoods rent increases per MLS real estate professionals Multiple Listing Service in areas 23,42 and 1375.
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Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Broker DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Text and photos created or modified by artificial intelligence. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.
