• calendar_month January 16, 2023
• folder Multi-Family Market Report

Overview

Submarket vacancy in Glendale, 3.2%, is near its lowest levels in decades. Average asking rates are presently growing at 5.2% on a year-over-year basis, but growth has stalled since the second half of 2022.

Glendale was one of L.A.'s hotspots for new multifamily construction last decade, with more than 3,600 units delivered during this time. However, the current construction pipeline is modest. 

Many of the largest recent apartment transactions have involved public agencies seeking to convert large communities into middle-income housing through the assistance of tax-exempt bond financing. The average price for Glendale apartments is $480,000/unit, with cap rates averaging 3.8%.

Vacancy

Vacancy in Glendale 3.2%, is still near its lowest levels in decades, but the area has seen soft demand since late 2021, and vacancy is up from a recent low of 2.6% in 22Q2. Glendale's status as a centrally located employment hub is a key source of rental demand. Aside from the concentration of employers in Glendale itself, the city provides relatively easy access to several other major job nodes in the region.​​​​​​​

Considering current construction levels are modest, supply will do little to upend market fundamentals in the submarket. Even in the face of modest anticipated leasing activity in the near term, submarket vacancy will likely remain relatively low for at least the near to midterm.

Rent

Average apartment asking rents in Glendale, $2,260/month, are slightly above the L.A. County market average but are slightly lower than in Tri-Cities Burbank and Pasadena. Gains over the last four quarters, 5.2%,​​​​​​​compare to 2.9% for the Greater Los Angeles apartment market. Rents dipped slightly in 2020, but recovered to pre-pandemic levels in 21Q2.​​​​​​​