Multifamily Market Report
Glendale, CA Market Overview
Glendale, CA has been one of Los Angeles’s most popular locations for new multifamily development over the past decade. The submarket recovered quickly from the pandemic, returning to pre-pandemic rent levels in Q2 2022, recording at 4.7 percent year-over-year rent growth. Glendale saw annual sales at $310,000,000 million with an average price per unit of $435,549 throughout 2022. Multifamily investors are drawn to Glendale because of its impressive school district, high employment rate, and large quantity of residents.
Highlights
- Vacancy rate sits at 2.9 percent, a near record low for the area
- Glendale is well-known for its excellent public and private school districts
- Glendale was one of L.A.’s hotspots for new multifamily construction over the past 10 years
- Rent gains in the last four quarters have been at 4.7 percent
Vacancy, Rent, and Construction
The 2.9 percent vacancy rate in Glendale is well below the Greater L.A. apartment vacancy average, which sits at 3.6 percent. Glendale’s central location, which houses many employers and offers easy access to major employment hotspots, drives impressive renter demand.
The average asking rent in Glendale is approximately $2,240 per month. Over the past year, Glendale saw rent gains of 4.7 percent. Compared to overall L.A. County, Glendale’s asking rent is slightly higher, but remains lower than the Tri-Cities, such as Burbank and Pasadena.
Glendale’s construction pipeline has minimized since 2019, with only 260 units currently underway. In the past eight quarters, 108 units were delivered, according to CoStar. Approximately 75 percent of Glendale’s apartment units are studios and one-bedrooms, but that is anticipated to diversify, thanks to the Downtown Specific Plan, which mandates that two-and-three-bedroom units must comprise at least 20 percent of the unit mix of any new development projects in the L.A. metro.
Newer luxury communities are concentrated along Brand Boulevard and North Central Avenue north of the Americana at Brand shopping center- CoStar Group
Sales
Glendale is a highly desirable area that continues to peak investor interest, as it houses some of the newest developments in the Greater L.A. region. The average multifamily property sale price is 5.4 million with a 2.9 percent vacancy rate at the time of sale. In the first half of 2021, three properties traded for $100 million, and each property was acquired to convert from market-rate to middle-income housing. In June 2022, a private family trust bought Legendary Glendale, an 80-unit property for $48 million, or $600,000 per unit.
Sales activity has been strong and investors are continuing to plant capital in the area.
By the Numbers
- 262 units under construction
- 103 units delivered year to date
- $435,549 average price per unit
- $310,000,000 sales volume year to date
