Los Angeles County Property Management

The county is home to more than one-quarter of California residents and is one of the most ethnically diverse counties in the U.S. Its county seat, Los Angeles, is also its most populous city at about four million. Los Angeles County had a population of 9,818,605 in the 2010 United States Census. The racial makeup of Los Angeles County was 4,936,599 (50%) White, 1,346,865 (13.7% Asian, 856,874 (9%) African American, 72,828 (0.7%) Native American, 26,094 (0.3%) Pacific Islander, 2,140,632 (21.8%) from other races, and 438,713 (4.5%) from two or more races. Non-Hispanic whites numbered 2,728,321, or 28% of the population. Hispanic or Latino residents of any race numbered 4,687,889 (48%); 36% of Los Angeles County's population was of Mexican ancestry; 3.7% Salvadoran, and 2.2% Guatemalan heritage. The county has a large population of Asian Americans, being home to the largest concentration of immigrants who are Burmese, Cambodian, Chinese, Filipino, Indian, Indonesian, Korean, Sri Lankan, Taiwanese, and Thai in the world. The largest Asian groups of the 1,346,865 (13.7%) Asians in Los Angeles County are 4.0% Chinese, 3.3% Filipino, 2.2% Korean, 1.0% Japanese, 0.9% Vietnamese, 0.8% Indian, and 0.3% Cambodian.

The median personal earnings for all workers 16 and older in Los Angeles County are $30,654, slightly below the US median; earnings, however vary widely by neighborhood, race and ethnicity, and gender. The median income for a household in the county was $42,189, and the median income for a family was $46,452. Males had a median income of $36,299 versus $30,981 for females. The per capita income for the county was $20,683. There are 14.4% of families living below the poverty line and 17.9% of the population, including 24.2% of under 18 and 10.5% of those over 64. Los Angeles County has the highest number of millionaires of any county in the nation, totaling 261,081 households as of 2007.

The homeownership rate is 47.9%, and the median value for houses is $409,300. 42.2% of housing units are in multi-unit structures. Los Angeles County has the largest number of homeless people, with "48,000 people living on the streets, including 6,000 veterans.", in 2010. Source Wikipedia

Costar:

LA continues to be a favorite target of multifamily investors and developers. Supply constraints and community opposition prevent most submarkets from being overbuilt, and a high degree of investor interest means that the market will remain liquid. More than 50% of residents rent their homes, the highest ratio of renters to owners of any major metro in the country. The deep renter pool helps to guarantee steady demand and healthy rent growth potential, as vacancies were at their lowest level in over a decade at mid-year 2018. The large, diverse economy, coupled with a widespread housing shortage in LA County, should ensure that fundamentals remain stable for the near future. High-profile projects like the NFL stadium in Inglewood and the Lucas Museum of Narrative Art in Exposition Park could help jump-start development in the generally neglected southern part of the metro, and Los Angeles' recent selection as the host of the 2028 Summer Olympics should also help boost infrastructure spending and development across the county.

LA is young and expensive—a perfect mix for apartment owners. A recent study from Harvard’s Joint Center for Housing Studies found that Los Angeles has the highest rate of renter households of any U.S. metro: about 52%, well above the national average of 36%. One reason is that the metro has a relatively young population, thanks in part to high international in-migration, which tends to bring a younger demographic. The result is many residents in the prime renter cohort of 20–34-year-olds and a correspondingly large pool of renter households. The continually widening gap between incomes and home prices also contributes to the deep renter pool. The massive gap between average incomes and the income required to buy a median-priced home in LA County makes this the most in affordable housing market in the nation. Taken together, these factors should keep LA’s apartments well stocked.

Vacancies continue to decline steadily, now standing at around 3.5%. About 5,700 new units were built in LA in 2017, the lightest construction totals since 2013. That figures to be a temporary lull, as 2018 and 2019 are expected to be the heaviest years for new deliveries this cycle. Nearly 30,000 units are expected to be built in LA before the close of the decade. However, the overall shortage of housing in LA County should keep demand robust as the increasingly prohibitive cost of buying a home pushes more Angelenos into an already-deep pool of renters. Rent growth has declined significantly from the cyclical highs of 2015, but LA rents continue to rise faster than the National Index. If the economy remains on a positive trajectory, fundamentals should stay healthy enough for rent growth to continue to outperform the national average. While these rent gains should yield admirable returns for investors, anticipated growth is reflected in steadily rising prices, and cap rates remain very low on average.

Economy

Los Angeles County is commonly associated with the entertainment and digital media industry; all six major film studios—Paramount Pictures, 21st Century Fox, Sony, Warner Bros., Universal Pictures, and Walt Disney Studios—are located within the county. Numerous other major industries also define the economy of Los Angeles County, including international trade supported by the Port of Los Angeles and the Port of Long Beach, music recording and production, aerospace and defense, fashion, and professional services such as law, medicine, engineering and design services, financial services and more. High-tech sector employment within Los Angeles County is 368,500 workers, and manufacturing employment within Los Angeles County is 365,000 workers. Source Wikipedia