BRONSON APARTMENTS

HOUSING TYPE — MARKET-RATE MULTIFAMILY

HBG’s Bronson Apartments project is conceived with accelerated construction schedules as the solution to achieving affordable construction in Los Angeles, widely known as one of the most expensive cities in the U.S. to build in. It’s composed of eight market-rate rental units — four two-bedroom + three-bath units and four two-bedroom + two-bath units. Located in the heart of East Hollywood, this project is part of a wave of multifamily projects that have gradually replaced pre-WWI single family homes in re-zoned areas of Los Angeles. Utilizing early HBG design studies and successes, the Bronson Apartments project has evolved into a universal multifamily solution for the vast number of standardized lot sizes throughout Los Angeles. Because of its high adaptability and previously secured approvals with the State of California Housing and Community Development Agency, this project is positioned for fast track permitting and construction. Additional sites for the installation and construction of this Bronson Apartment model are now being explored in the HBG Feasibility phase.

Is There A Demand For Multifamily Housing in Los Angeles?

From the 2019 USC Lusk Casden Multifamily Forecast Report:

For 11 years now, since the Global Financial Crisis, Southern California has built little housing, both compared with its history and compared with other cities in the West.

Despite leading Southern California in new multifamily construction over the last several years, and even with an average renter income that is among the lowest in the region, Los Angeles County has the highest average rent among the Southern California metro areas.

There were 3.57 million housing units in Los Angeles County in 2019, according to the California Department of Finance. Of these, 1.54 million were multifamily. Los Angeles County is the only Southern California region with more renters than homeowners. Data from the American Community Survey for 2018 indicate that ‘renters accounted for 54.7% of all households in the County.'

Average apartment rent was $2,230 per month, up from $2,180 in 2018.

Where Will The Majority Of Multifamily Projects Take Place?

MULTIFAMILY PROJECTIONS — A Los Angeles Perspective

The recently named SoFi Stadium, scheduled to open next summer (2020) in Inglewood, California, with its prime location, its proximity to Los Angeles International Airport and relative affordability (compared with western neighbors such as Westchester and El Segundo) shows that Inglewood-Gardena-Hawthorne will be a market to watch in the coming years.

Stubbornly low vacancy rates over many years reflect the chronic shortfall of new housing stock.

Multifamily construction in Los Angeles County increased steadily from 2009 to 2015, when it achieved a peak of 18,638 units. Permitting has been reasonably active since then, with 16,633 permits in 2018, up 1.1% from the previous year.

The combination of rising employment and little construction ensure that low vacancies and rising rents will prevail in the Los Angeles County multifamily market. The vacancy rate will be virtually unchanged, edging up from 3.5% to 3.6%. With vacancy below 4%, the average rent is expected to increase 3.1% from $2,230 in 2019 to $2,300 in 2020, with an increase of 3.0% expected in 2021. Rent increases will be softer in high-end submarkets.

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