In the last year, multifamily investment activity in Los Angeles hit its highest level ever.

According to a CoStar report and an article by The Real Deal, there were $10 billion in apartment building sales from June 2017 to June 2018 with a record average sale price of $275,000.

Rent growth has been slowing recently, hovering near the national average of 3%, but an influx of luxury units this year is expected to push rents up by 6.3% to an average of $2,200 a month.

Also contributing is the proposed Measure JJJ, which instituted a requirement for builders to incorporate affordable units into some projects and pay prevailing wages on projects seeking city incentives, both of which drive the cost of construction up, and therefore rents, up.