Category: rent

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Are Rents Declining in Downtown Los Angeles?

REAL ESTATE NEWS  —  Many Downtown area homeowners received a post card recently from a loft specialist real estate company stating that rents are declining.  Because the L.A. Loft Blog is the authority of Downtown Los Angeles real estate, we’re going to help determine if this is true.  Are rents really going down in Downtown L.A.?   #rentprice #dtla

Are Downtown L.A. Rents Going Down?
Are Downtown L.A. Rents Going Down?

RENT PRICES

The post card fails to include the exact beginning and end period, and also does not mention the comparison period.  The statistical statements therefore are not complete, and so it’s like saying a car is going 55 or 75 without saying miles per hour or kilometers per hour etc. The same is true when talking about rental rates. Panic selling is rarely a good idea, so Downtown home owners and landlords want to know the real details of what is happening to the DTLA rental market.

To know the real state of rents in Downtown, we need to look directly at the MLS Multiple Listing Service data, and compare the specific time periods.  The generally accepted time period to observe in real estate is the past 6 months (the recent market period), and then to compare that to the same 6 month period in the years earlier.

We’re not going to use average because the MLS data contains errant massively incorrect data.  Median is more accurate (the middle number), so lets take a look at the real median rental price for those specific periods:

2015 $2,550  Downtown LA Rents 2015 (pdf)
2016 $2,740  Downtown LA Rents 2016 (pdf)
2017 $2,750  Downtown LA Rents 2017 (pdf)

So looking directly at the real MLS data, we can see that rents are generally not going down, but the rate of increase has most certainly gone down. A stabilization has occurred. No need to panic. In fact, the opposite is true. The right amount of new apartments have been built so that the thousands of new Downtown residents might not need to encounter huge rent increase in the near future, and landlords will likely not be able to raise rents dramatically. Downtown Los Angeles landlords will also not likely need to implement the 65% rent reduction that the recent postcard seems to suggest.

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What's really happening wth Downtown Los Angeles apartment rental prices?
What’s really happening wth Downtown Los Angeles apartment rental prices?

 

Downtown Los Angeles Homes Sold Prices

Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

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Cash Flow Homes USA

Check out America’s best rental income properties under $50,000 from CashFlowHomesUSA.com 

 

Yesterday, thousands of readers were gripped by the LA Loft Blog post that went viral across the internet. Real estate is one of the best investments for the new year. It’s the biggest investment made by the average person, but does not need to be an extremely large investment.  #rental #income #homes

With its amazing transformation, Downtown Los Angeles attracts up to 100 new residents per day.  And did you know that the Downtown area now provides more than 500,000 jobs? Yes, it’s true. The neighborhood that many had left for dead in the 1980’s is now one of the leading hotspots for all kinds of opportunities. Check out yesterday’s list of the top 5 best Downtown real estate investments. The post went viral and was the most read post of the past 30 days. It’s at https://www.laloftblog.com/2017/01/02/top-10-investments-for-2017/

While Downtown lofts are super exciting to many first time Downtown home buyers and investors, most buyers cannot afford the $657,214 average price of a Downtown loft, and they cannot afford to carry the property at a loss until it finally reaches a positive cash flow. Take a look at the property pin map above that shows negative cash flow properties in Downtown (red pins) and then see the positive cash flow of some other American neighborhoods (green pins) below. This is the fastest method that real estate professionals use to determine investment value and profitabiity.

Average investors can get a property with a much faster positive cash flow, lower purchase price and bigger cash-on-cash return. Request a free list of America’s best rental income homes from $40,000.  Get free information from CashFlowHomesUSA.com or fill out the online form:

 

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, 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. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.