| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 69th | Poor |
| Demographics | 5th | Poor |
| Amenities | 46th | Fair |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 1617 E Avenue R, Palmdale, CA, 93550, US |
| Region / Metro | Palmdale |
| Year of Construction | 1984 |
| Units | 56 |
| Transaction Date | 2011-01-11 |
| Transaction Price | $1,800,000 |
| Buyer | BEST PALM GROUP LLC |
| Seller | ML-CFC 2006-1 PALMDALE APARTMENTS LLC |
1617 E Avenue R Palmdale Multifamily Investment
Neighborhood-level occupancy has been steady in recent years, supporting income durability for a 56-unit asset in an inner-suburban Los Angeles County location, according to WDSuite’s CRE market data. This commercial real estate analysis points to renter demand that is resilient relative to nearby options, with pricing still below many coastal submarkets.
Situated in Palmdale within the Los Angeles metro, the neighborhood shows stable operating fundamentals for multifamily: occupancy is strong at the neighborhood level and sits in the top quartile nationally, per WDSuite, which can help support cash flow durability through cycles. The area functions as Inner Suburb workforce housing with a renter-occupied housing share that is high for the region, indicating depth in the tenant base.
Daily needs access is a relative strength: neighborhood grocery and restaurant density rank in the top decile nationally, while cafés, parks, and pharmacies are limited. For investors, this mix suggests everyday convenience without the premium pricing often seen in amenity-saturated cores.
Within a 3-mile radius, population and household counts have grown over the past five years, expanding the local renter pool. Forward-looking estimates show household counts trending higher even as household sizes ease, which typically supports leasing velocity for smaller formats and adds to demand for rental units.
On the ownership side, elevated home values relative to local incomes (high national value-to-income percentile) and rising rents reinforce reliance on multifamily housing. For owners, this backdrop can support pricing power, though retention should be managed thoughtfully where rent-to-income ratios indicate affordability pressure.
Crime conditions are mixed when compared with the Los Angeles metro and national benchmarks. The neighborhood sits below the national median for safety, yet recent year-over-year trends show meaningful declines in both property and violent offenses, according to WDSuite. These improvements suggest risk is easing from prior levels, though investors should underwrite with conservative assumptions and monitor local trendlines.
Relative to the 1,441 neighborhoods across the metro, the area falls on the higher-crime side today, but the directionality has been favorable. For long-term holders, ongoing improvement can aid renter retention and operating stability if sustained, while near-term underwriting should reflect current comparative positioning.
Employment drivers nearby are anchored by aerospace and essential services, with additional brand-name corporate headquarters within commuting distance. This base supports workforce housing demand and helps stabilize leasing and retention for properties serving employees of Lockheed Martin Aeronautics Co., Waste Management, Avery Dennison, Disney, and Chevron.
- Lockheed Martin Aeronautics Co. — aerospace (2.7 miles)
- Waste Management - Palmdale — waste & environmental services (2.9 miles)
- Avery Dennison — materials & labeling (30.1 miles) — HQ
- Disney — entertainment & media (31.5 miles) — HQ
- Chevron — energy offices (34.9 miles)
The property’s submarket exhibits solid neighborhood-level occupancy and a deep renter pool, supported by workforce employment nodes and a high share of renter-occupied housing units. Based on CRE market data from WDSuite, the area’s operating stability compares favorably with many outer-ring Los Angeles locations while still offering cost advantages versus coastal hubs.
Household and income growth within a 3-mile radius, coupled with elevated ownership costs relative to local incomes, reinforces reliance on multifamily rentals and supports pricing power and lease-up velocity. Near term, investors should account for affordability pressure and monitor safety trends, which have been improving but remain a consideration relative to metro peers.
- Strong neighborhood occupancy supports income stability and reduces downtime risk.
- Deep renter base and workforce employers underpin steady tenant demand.
- Elevated ownership costs versus incomes reinforce reliance on rentals and pricing power.
- 3-mile household growth and smaller household sizes broaden demand for smaller units.
- Risks: affordability pressure and below-median safety, despite improving crime trendlines.