| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 69th | Poor |
| Demographics | 5th | Poor |
| Amenities | 46th | Fair |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 38047 20th St E, Palmdale, CA, 93550, US |
| Region / Metro | Palmdale |
| Year of Construction | 1987 |
| Units | 28 |
| Transaction Date | 1995-06-30 |
| Transaction Price | $820,000 |
| Buyer | STATE STREET BANK & TRUST COMPANY |
| Seller | TREND BUILDERS |
38047 20th St E Palmdale 28-Unit Multifamily Opportunity
Neighborhood occupancy remains firm and a sizable renter concentration supports demand, according to WDSuite’s CRE market data, positioning this asset for steady leasing in an Inner Suburb of Los Angeles County.
Palmdale’s Inner Suburb setting offers practical renter appeal for workforce households. The neighborhood’s occupancy ranks competitive among the 1,441 Los Angeles–Long Beach–Glendale metro neighborhoods and sits in the top quintile nationally, indicating stable leasing conditions at the neighborhood level rather than at this specific property. Renter-occupied share is elevated locally, pointing to a deeper tenant base and consistent turnover velocity for multifamily assets.
Daily-needs access is a relative strength: grocery and restaurant density track in the upper tier nationally, while cafes, parks, and pharmacies are limited. For investors, this mix often supports day-to-day convenience even if lifestyle amenities are thinner compared with core Los Angeles submarkets. Average school ratings are weak at the neighborhood level and could be a leasing consideration for family renters.
The property’s 1987 vintage is modestly newer than the neighborhood’s average construction year of 1982. That positioning can enhance competitiveness versus older stock, though investors should still plan for modernization of systems and interiors typical for late-1980s construction to support rentability and retention.
Within a 3-mile radius, recent population and household growth has been positive, and forecasts point to further increases in households over the next five years, which implies a larger tenant base and supports occupancy stability. Median contract rents have risen materially in recent years and are projected to continue advancing, while a high value-to-income environment suggests homeownership costs remain elevated relative to incomes, reinforcing reliance on rental housing. At the same time, higher rent-to-income levels introduce affordability pressure, a lease management consideration for pricing and retention.
Safety conditions in this neighborhood are below average relative to the metro and sit below the national midpoint, with the area ranking in the lower half among 1,441 Los Angeles–Long Beach–Glendale neighborhoods. Recent trends are directionally favorable: both violent and property offense rates have decreased year over year, which is a constructive signal for stability. Investors should underwrite to submarket-level comparables and monitor ongoing trends rather than block-level variability.
Proximity to major employers supports workforce renter demand and commute convenience, led by defense and aerospace, environmental services, and healthcare and telecom offices listed below.
- Lockheed Martin Aeronautics Co. — defense & aerospace (2.8 miles)
- Waste Management - Palmdale — environmental services (3.1 miles)
- Amerisourcebergen — pharmaceutical distribution (28.7 miles)
- Boston Scientific Neuromodulation — medical devices (29.0 miles)
- Charter Communications — telecommunications (29.5 miles)
This 28-unit asset benefits from neighborhood-level occupancy that is competitive within the Los Angeles metro and strong nationally, alongside an elevated renter-occupied share that deepens the tenant pool. Daily-needs retail access is a plus, and proximity to major employers underpins leasing stability. Based on commercial real estate analysis from WDSuite, rent levels have moved upward and are projected to continue rising at the neighborhood level, supporting revenue growth assumptions when paired with prudent lease management.
Constructed in 1987, the property is slightly newer than the local average, offering a value-add path through targeted system upgrades and interior refreshes to strengthen competitive positioning against older comparable stock. Investors should weigh affordability pressure and below-average safety signals as underwrite considerations, while the high-cost ownership context supports sustained renter reliance on multifamily housing.
- Neighborhood occupancy competitive in metro and top-quintile nationally, reinforcing leasing stability
- Elevated renter concentration and strong daily-needs retail support tenant demand and retention
- 1987 vintage enables value-add through modernization to outperform older comparables
- Employer proximity (aerospace, services, telecom) bolsters workforce housing demand
- Risks: affordability pressure and below-average safety require careful pricing and operations