As the busy skyline of the Cranes of Downtown LA indicates, construction is on the rise in the neighborhood. Rentcafe quantified how many fresh flats they brought with them.
The rental data center analyzed the construction data of PropertyShark and Yardi Matrix in about 1,000 U.S. neighborhoods, looking at “large-scale rental buildings of 50 or more units located in the largest 30 cities in the U.S..” It found that from 2010 to 2016 7,551 new units were built in 35 new residential buildings in DTLA.
These fresh additions accounted for 63 percent of all rentals available in Downtown in that six-year span, says Rentcafe.
Downtown was ranked second among neighborhoods in the big city that added the newest units. Long Island City, New York, added 12,533 units over the same period of time.
Separate studies looking at the town as a whole have discovered that while LA is on track this year to add a record number of units, it is still far less than the amount of units placed on the market in the 1980s.
Although, according to Rentcafe’s results, the amount of units being placed on the market is comparatively large, specialists have stated that the units are likely not coming online quickly enough to generate a significant drop in rental prices in LA, which are increasing faster than the rents in the remainder of the state.
An analysis of building permits showed a 6 per cent drop in the total number of permits issued in 2015 and the total number of permits issued in 2016. That decline is noteworthy because in six years it is the first such reduction. Whether the decrease is the beginning of a bigger trend continues to be seen.