This week, we sent out three different investment opportunities and received a variety of responses. A common theme we’re hearing: clients are shifting focus away from California and exploring out-of-state real estate options.

We get it—Los Angeles is a challenging market with rising insurance costs, strict rent control, and increasing regulation. It’s not the easiest place to do business.

That said, in our opinion, Los Angeles offers some of the most stable long-term returns of any real estate market in the U.S. Over the last 10 years, LA multifamily values have increased by an average of ~5.8% annually, even through economic cycles. In addition, rental demand remains strong, with vacancy rates averaging around 3–4%, far below the national average.

While cash flow may look better out-of-state, LA typically delivers higher appreciation and stronger asset liquidity—especially in core infill locations. Historically, investors who hold LA real estate for 7–10 years see significant equity growth, even when rent control or regulatory pressures exist.

It’s a tough market, no doubt—but for those who navigate it well, the long-term upside often outweighs the short-term friction.

We’re happy to discuss market dynamics or help evaluate opportunities—whether local or out-of-state. Let us know how we can support your investment strategy.

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