LA Real Estate Daily 🏠 | Lux Real Estate Soars | Builders Struggle

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NOTABLE SALE
$28,500,000 MALIBU HOME SOLD

MARKET: Malibu
ASSET TYPE: Single Family
SALE PRICE: $28,500,00

Interior designer Saffron Case and husband Timothy sold their 4,036 sqft home on Carbon Beach.

NEWS
MULTIFAMILY STRUGGLES TO REBOUND

ARTICLE TLDR

• The Number Of Apartments Buildings Breaking Ground Has Fallen Off A Cliff

The number of market-rate apartments that broke ground in Los Angeles County last year was a little more than 8,000, which is the fewest since 20121. The number of apartments currently under construction in the county is less than 24,000 units, down from 27,000 units at the beginning of last year. The sluggish apartment starts are attributed to rising interest rates, which have hampered developers’ ability to secure financing that results in “targeted returns” 1. Lower demand from tenants has led to rising apartment vacancies, which has contributed to builders’ hesitation to start new projects. Additionally, the Measure ULA real estate transfer taxes on residential and commercial property sales imposed in the city of Los Angeles last April have also crimped construction 1. These measures could potentially suppress development in the long term1.

The number of market-rate apartments that broke ground in Los Angeles County last year was a little more than 8,000, which is the fewest since 20121. The number of apartments currently under construction in the county is less than 24,000 units, down from 27,000 units at the beginning of last year. The sluggish apartment starts in Los Angeles County last year can be attributed to a combination of factors, including rising interest rates and lower demand from tenants1. Additionally, the Measure ULA real estate transfer taxes on residential and commercial property sales imposed in Los Angeles last April have also crimped construction 1. These measures could potentially suppress development in the long term1.

NEWS
LUXURY HOME SALES SURGE IN DECEMBER

• Home repair costs in California have risen by 67% in the past decade, driven by inflation, supply chain disruptions, and pandemic-induced demand.

According to a report by Douglas Elliman, residential agents in Los Angeles County saw a 4.5% increase in signed contracts for single-family homes in December 2023 compared to the same month in 20221. The luxury segment of the market saw the most activity, with a 41% increase in year-over-year transactions for homes priced at $5 million and above1. In November 2023, there was a 28% year-over-year increase for signed contracts in homes priced over $5 million1. The report’s author, Jonathan Miller, believes that the market is getting used to the ULA transfer tax, which levies a tax on residential and commercial property sold for more than $5 million and less than $10 million1.

The real estate market in Los Angeles County seems to be thriving, especially in the luxury segment. The increase in signed contracts for single-family homes in December 2023 is a positive sign for the industry. The report’s findings suggest that the market is adapting to the ULA transfer tax, which could have a positive impact on the real estate sector in the long run.