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West Region Performance Dulled by Coastal Markets

coastal bedroom

Apartment markets in the Western U.S. are seeing a varied recovery from recent lows, with some exceptions among big coastal cities.

Overall, the region saw demand for around 69,000 apartment units in the year-ending 1st quarter, less than half of what the South region logged. Large, pricey coastal markets have struggled, while more affordable inland markets have seen solid demand.

Demand rates in coastal markets

Phoenix leads with about 14,800 units absorbed, thanks to its affordability and job growth. Other inland markets like Denver and Salt Lake City have also seen strong demand.

jobs and population in west coastal markets

On the other hand, pricey coastal markets like San Diego and Los Angeles recorded net move-outs. These cities, with rents averaging $2,800, have seen milder job growth and population decline.

Las Vegas and Phoenix, with significant job growth and population increase, have seen robust demand. Meanwhile, cities like Los Angeles and Oakland have experienced population declines and tepid job growth, leading to sluggish demand.

As investors decide where to invest within coastal markets, the data points to coastal markets being a safe bet.

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