…Something is happening downtown that would shock many renters living in an increasingly expensive Los Angeles: Some landlords are letting tenants live for free.
Some construction lenders are growing more cautious, while a handful of landlords are cutting deals to lure tenants who increasingly have more options in what is still one of the priciest neighborhoods in the city.
Although concessions such as a rent-free month aren’t widespread, market watchers said they’re greater than in other neighborhoods and should only become more prevalent as more buildings open up.
“Concessions have been virtually nonexistent across L.A. for several years. Demand had been so high there just wasn’t any need for them,” said Steve Basham, senior market analyst with CoStar Group Inc.
The new dynamic, Basham said, can be chalked up to simple supply and demand. In the last year and a half, more than 3,700 apartments have opened downtown and an additional 6,260 are currently under construction, according to real estate firm Transwestern.
When those apartments are finished, they’ll boost the number of downtown residences — both for sale and rentals — by about 15% to more than 40,000. Thousands more apartments are planned, as well.
“Landlords don’t have the leeway to push rents as they did in the past,” said Basham, who thinks downtown is at risk of becoming oversupplied from a developers perspective. “Renters have many more options than they did even six months ago.”…
Source: As new apartments flood downtown L.A., landlords offer sweet deals
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