Multi-family Investments In 605 Corridor
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Brief History
The 605 Corridor in Los Angeles, a major artery running through the southeastern portion of Los Angeles County, has emerged as a real estate investment hub with untapped potential. Spanning several key cities, this area combines a strategic location, strong demand for rental housing, and ongoing economic growth, making it a prime location for investing in some of the best apartment buildings Los Angeles has to offer.
This guide delves into why the 605 Corridor is a prime target for multi-family property investors, covering essential topics such as market trends, infrastructure development, and risk management strategies.
WHAT IS THE 605 CORRIDOR?
The 605 Corridor is a vital freeway that connects several suburban cities in Los Angeles County. Known for its accessibility and strong economic growth, the area has become a hot spot for multi-family real estate investors. With several cities offering opportunities for some of the best apartment buildings in Los Angeles, the 605 Corridor is a highly competitive yet rewarding market.
Officially known as Interstate 605 or the San Gabriel River Freeway, it was constructed in the mid-20th century, with most of it completed by the 1960s. The freeway runs through the eastern suburbs of Los Angeles County, connecting major freeways like the I-5, I-10, and I-405, while following the path of the San Gabriel River.
Initially built to alleviate traffic congestion and improve accessibility between industrial and residential areas, the 605 Corridor has since become a vital transportation link for commuters and businesses alike.
Over the years, the cities along the corridor – some of which are mentioned below – have evolved from largely agricultural or industrial roots into suburban communities with growing populations and diverse economies. This growth, combined with infrastructure improvements, has transformed the 605 Corridor into a key area for real estate investment, particularly in multi-family residential and commercial developments. Its strategic location between major employment hubs in Los Angeles and Orange County makes it an attractive area for both renters and investors.
KEY CITIES IN THE 605 CORRIDOR
The cities along the 605 Corridor each offer unique characteristics and investment potential, making them attractive options for multi-family residential investors. From growing suburban communities to established employment hubs, these key areas provide diverse opportunities for those seeking to invest in the best apartment buildings Los Angeles has to offer.
Bellflower, CA
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Total population: Approximately 79,000
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Renter population: About 62% of residents are renters
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Average rent (as of July 2024): $2,819 per month, or 63% higher than the national average
Sold in Bellflower, CA: A 4-unit multi-family residential investment property with an ideal unit mix designed to cater to a diverse tenant base. Onsite carport parking and an onsite laundry facility are added perks.
Why Bellflower attracts multi-family investors. Its high percentage of renters, affordable housing, and a working-class population (almost 30%) fuel the growing demand for well-managed apartment buildings.
Why renters are drawn to Bellflower. The proximity to major employment centers, such as Long Beach and downtown Los Angeles, makes it a popular area for renters. The city is also seeing revitalization efforts in its downtown area, which further increases demand for rental properties.
Additional opportunities of investing in Bellflower. It offers value-add opportunities in older apartment buildings that can be renovated to raise rental income.
Inquire about multi-family investment opportunities in Bellflower, CA
Downey, CA
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Total population: Approximately 114,000
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Renter population: About 51% of residents are renters
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Average rent (as of July 2024): $2,972 per month, or 72% higher than the national average
Why Downey attracts multi-family investors. Downey is one of the largest cities in the 605 Corridor and is known for its thriving healthcare and aerospace industries. With a median household income higher than the national average, Downey offers investors the chance to attract middle-income renters, particularly professionals and families.
Why renters are drawn to Downey. The city’s stable economy and growing job market contribute to strong demand for multi-family housing, making it an ideal location for investing in some of the best apartments Los Angeles has to offer.
Additional advantage of investing in Downey. Investors can also benefit from Downey’s high renter retention rate, which ensures consistent rental income.
Inquire about multi-family investment opportunities in Downey, CA
La Habra, CA
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Total population: Approximately 62,000
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Renter population: About 44% of residents are renters
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Average rent (as of July 2024): $3,100 per month, or 79.6% higher than the national average
Why Downey attracts multi-family investors. Located on the border of Orange County and Los Angeles County, La Habra offers excellent opportunities for multi-family investors seeking a suburban market with strong rental demand.
Why are renters drawn to La Habra. The rental population includes many young families and professionals who commute to neighboring cities for work, making it a desirable location for larger apartment units.
Additional investment opportunities. The city also offers possibilities for new developments, as well as the renovation of older apartment buildings.
Inquire about multi-family investment opportunities in La Habra, CA
La Mirada, CA
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Total population: Approximately 48,000
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Renter population: About 28% of residents are renters
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Average rent (as of July 2024): $3,980 per month, or 130.6% higher than the national average
Why La Mirada attracts multi-family investors. While the renter population is smaller compared to other cities in the 605 Corridor, the city’s proximity to major employment hubs, including those in Orange County, makes it an appealing location for families seeking affordable multi-family housing.
Why renters are drawn to La Mirada. La Mirada is a family-oriented city with a focus on education and community amenities, such as parks and schools, which make it attractive for long-term renters.
Where to invest in La Mirada. Investors in La Mirada can find opportunities to develop larger apartment units with family-friendly amenities, which are in-demand for this market.
Inquire about multi-family investment opportunities in La Mirada, CA
La Puente, CA
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Total population: Approximately 37,000
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Renter population: About 40% of residents are renters
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Average rent (as of July 2024): $2,966 per month, or 71.8% higher than the national average
Why La Puente attracts multi-family investors. La Puente is experiencing a wave of redevelopment, making it an emerging market for multi-family investors. The city has a relatively high rental population and strong demand for affordable housing. Investors looking for low entry costs but high potential for rental income will find La Puente appealing.
Why renters are drawn to La Puente. The city’s ongoing efforts to improve infrastructure and community amenities are likely to further increase the need for rental properties.
Additional advantage for investors. La Puente’s strategic location between Los Angeles County and San Gabriel Valley also makes it a desirable area for those who need easy access to both regions.
Lakewood’s solid infrastructure and family-friendly environment make it an excellent location for developing apartment buildings targeted at middle-income families and professionals.
Inquire about multi-family investment opportunities in La Puente, CA
Lakewood, CA
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Total population: Approximately 83,000
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Renter population: About 30% of residents are renters
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Average rent (as of July 2024): $4,045 per month, or 134% higher than the national average
Lakewood, CA, is a stable, family-friendly community with a strong renter retention rate and proximity to major employment centers
Why Lakewood attracts multi-family investors. Lakewood is a stable, middle-class community with median household incomes higher than national average. The city has a strong renter retention rate, reflecting the long-term appeal of its rental properties. Solid infrastructure and a family-friendly environment make it an excellent location for developing apartment buildings targeted at middle-income families and professionals.
Why renters are drawn to Lakewood. Lakewood attracts renters seeking a suburban lifestyle with proximity to major employment centers like Long Beach.
Investment opportunities in Lakewood. Investors can find opportunities in both existing multi-family properties and newer developments, particularly in areas close to shopping centers and public transportation.
Inquire about multi-family investment opportunities in Lakewood, CA
Montebello, CA
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Total population: Approximately 63,000
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Renter population: About 54% of residents are renters
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Average rent (as of July 2024): $2,824 per month, or 63.6% higher than the national average
Why Montebello attracts multi-family investors. Montebello is a key market for multi-family investors due to its proximity to Los Angeles and its strong rental demand. With over 54% of its population renting, Montebello offers significant opportunities for investors to acquire and manage apartment buildings.
Why renters are drawn to Montebello. The city’s location near major highways and public transportation makes it a popular area for commuters. Montebello’s diverse renter population includes both working-class families and professionals, making it an ideal location for a range of multi-family properties, from affordable units to higher-end developments.
Investment opportunities in Montebello. The city offers significant opportunities for investors to acquire and manage apartment buildings
Inquire about multi-family investment opportunities in Montebello, CA
Norwalk, CA
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Total population: Approximately 102,000
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Renter population: About 34% of residents are renters
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Average rent (as of July 2024): $3,194 per month, or 85% higher than the national average
Norwalk, CA, is a diverse suburban city along the 605 Corridor, offering a blend of residential charm and urban convenience attractive to renters
Why Norwalk attracts multi-family investors. Norwalk is a growing city with a diverse economy and stable rental market. Its strategic location near major freeways, growing rental demand, and proximity to employment centers in Los Angeles and Orange County make it an attractive hub for multi-family investors seeking steady occupancy and long-term growth potential.
Why renters are drawn to Norwalk. The city’s central location in Los Angeles County makes it a convenient hub for commuters, which drives demand for rental housing.
Investment opportunities in Norwalk. The rental market is particularly strong among middle-income families. offering investors the opportunity to develop apartment buildings that cater to this demographic. The city is also seeing an influx of new developments and infrastructure improvements, which are likely to boost property values and rental demand in the coming years.
Inquire about multi-family investment opportunities in Norwalk, CA
Pico Rivera, CA
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Total population: Approximately 62,000
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Renter population: About 32% of residents are renters
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Average rent (as of July 2024): $2,907 per month, or 68% higher than the national average
Why Pico Rivera attracts multi-family investors. Pico Rivera offers a mix of residential and industrial areas, providing a balanced rental market for investors. With renters comprising a third of the population and Pico Rivera's strong industrial sector, there is a steady demand for affordable multi-family properties.
Why renters are drawn to Pico Rivera. Renters are drawn to Pico Rivera, CA, because of its relatively affordable housing compared to nearby areas, convenient access to major freeways like the 605 and I-5, and its proximity to major employment hubs in Los Angeles, making it an ideal location for commuters. The city also offers a suburban feel with plenty of parks and recreational facilities, attracting families and individuals looking for a balanced lifestyle.
Investment opportunities in Pico Rivera. Investors can find opportunities in both older apartment buildings and newer developments, particularly in areas near major employers and transportation hubs. Pico Rivera’s ongoing development projects are also expected to enhance the city’s appeal, making it a key location for multi-family investments.
Inquire about multi-family investment opportunities in Pico Rivera, CA
Santa Fe Springs, CA
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Total population: Approximately 19,000
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Renter population: About 39% of residents are renters
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Average rent (as of July 2024): $3,185 per month, or 84.5% higher than the national average
Why Santa Fe Springs attracts multi-family investors. Santa Fe Springs is primarily known for its industrial base, but it is also becoming a desirable location for affordable multi-family housing. With renters accounting for nearly 40% of the population, Santa Fe presents unique opportunities for investors seeking to cater to working-class families and industrial workers.
Why renters are drawn to Santa Fe Springs. Renters are drawn to the city's location near major highways, offering easy commuting to industrial and business hubs. In addition to employment opportunities, renters enjoy a quieter suburban environment with numerous parks and amenities that make it a desirable choice for individuals and families seeking a convenient yet peaceful place to live.
Investment opportunities in Santa Fe Springs. The city's zoning and development regulations also allow for potential expansion of multi-family housing, offering investors the opportunity to capitalize on growing rental demand.
Inquire about multi-family investment opportunities in Santa Fe Springs, CA
Whittier, CA
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Total population: Approximately 85,000
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Renter population: About 44% of residents are renters
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Average rent (as of July 2024): $2,899 per month, or 67.9% higher than the national average
Sold in Whittier, CA: A 16-unit multi-family residential investment property with amenities that include an onsite laundry facility and covered tuck-under parking
Why Whittier attracts multi-family investors. Whittier is a growing city known for its historic charm and proximity to major employment centers. The city’s rental market is diverse, with demand from both families and professionals. Whittier’s relatively high renter retention rate, combined with its appeal to a range of demographics, makes it an excellent location for multi-family real estate investments.
Why renters are drawn to Whittier. The city offers a blend of suburban tranquility with easy access to urban amenities. Its proximity to major highways like the 605 and I-5 makes commuting to job centers in Los Angeles and Orange County convenient.
Investment opportunities in Whittier. Investors can find opportunities in both upscale apartment buildings and more affordable properties, particularly in areas close to Whittier College and major transportation routes. The city’s ongoing development efforts are also likely to increase demand for high-quality rental properties in the future.
Inquire about multi-family investment opportunities in Whittier, CA
INVEST IN THE 605 CORRIDOR NOW WITH THE APARTMENT DEALER
The 605 Corridor is a prime market for multi-family investors looking to capitalize on Los Angeles' growing demand for rental housing. With its central location, economic growth, and increasing rental rates, this region offers ample opportunities to invest in the best apartment buildings Los Angeles has to offer.
Kristopher German of The Apartment Dealer specializes in helping investors find and acquire multi-family properties in the 605 Corridor. With years of experience in the Los Angeles real estate market and over $450 million in sales, he knows what it takes to succeed and will guide you toward a rewarding investment for your portfolio. Our website offers available multi-family listings along the 605 Corridor, landlord services, and much more. You can also check out our YouTube channel for more topics on multi-family real estate.
Contact 626.427.0786 to set up an appointment, or send an email to take the first step in maximizing your returns!