Los Angeles rocketed to the Number 1 spot on the Marcus & Millichap's National Multifamily Index.
The NMI helps real estate investors forecast market conditions according to a combination of year-ahead economic indicators and supply-and-demand conditions. Los Angeles ranked 11th on last year's list of 46 major markets.
What makes Los Angeles hot for multifamily investment? Simply put, supply is in high demand.
Is there more to it than that? We set out to find out using IBM's Watson analytics platform. We loaded our proprietary database of City of Los Angeles parcels into Watson and took it for a drive. Here's what we found:
The average parcel size for SFRs and MFRs in Los Angeles is virtually identical at 9300 square feet. However, for the same size parcel, multifamily is 5.6 times more valuable!
Our data platform includes analysis of 25,000 multifamily structures in Los Angeles -- each with room to grow under their existing zoning. That means underutilized zoning unaffected by Measure JJJ.
The paraphrase, there's gold in them hills and we've got your sifting pan!