Los Angeles multifamily sales activity picks up entering 2026

Greater Los Angeles multifamily market overview

Quarterly shifts in rents and vacancy in Los Angeles were slightly positive, though current property performance measures are nearly identical to levels from one year ago. During the past 12 months, average rents have ticked down just $3 per month, while the countywide average vacancy rate is identical to the year-earlier figure. The resilience in vacancy highlights continued renter demand in the market, despite a rising pace of deliveries. The South Bay is currently the highest performing area of Los Angeles County, leading vacancy improvements while also being the only area to record both quarterly and yearly improvements in asking rents. Downtown continues to account for the greatest share of new supply, with more than 1,000 units delivered in the first quarter. Overall, the pace of deliveries has been climbing across Los Angeles, with first quarter deliveries outpacing the same point in 2025 by 15%.

The opening months of 2026 brought an elevated level of activity to the Los Angeles multifamily investment market. The rise in transaction counts did not occur consistently across the entire region, however, with volumes in the San Fernando Valley and South Bay closely tracking recent averages. Increased activity in the first quarter was largely concentrated in Downtown and West Los Angeles. In Downtown Los Angeles, investors stepped up their acquisitions of properties ranging from 50-60 units that generally traded between $10 million and $15 million. A few sales also closed in West Los Angeles, where transaction counts are generally limited to only a handful of deals in a given year. In the first quarter, nearly all of the deals in West Los Angeles were priced between $30 million and $50 million, smaller than the area’s long-term average transaction size.

Looking ahead for the Los Angeles multifamily market:

After recent periods of volatility, the Los Angeles multifamily market is poised for a year of mostly stable performance. Vacancy may push a bit higher, but renter demand is expected to remain consistent and new units will eventually be absorbed. Rent growth for the county is projected to be light in 2026, though performance will vary by location and asset class. Rent increases in Downtown Los Angeles and San Fernando Valley may exceed 1% for the full year. The pace of employment growth in Los Angeles will likely tell the true direction for multifamily operating conditions beyond 2026. Employment growth in 2025 fell well short of historical averages for this market, though gains in recent months suggest signs of improvement for 2026. Still, a wider range of industries will need to sustain consistent employment gains to support a more stable renter base across Los Angeles County.

The number of multifamily transactions in Los Angeles is expected to continue outpacing last year, though it may take until 2027 or 2028 for total sales to return to historical norms. Submarkets such as Downtown and West Los Angeles, which have outperformed so far this year, may continue to post elevated levels of activity, while the San Fernando Valley is likely to record an acceleration in the coming months as activity catches up to more typical seasonal levels. Properties are expected to continue to trade within a wider pricing range than in many other markets, due to the area’s broad investor mix and range of assets available for acquisition. Any improvement in rents, coupled with vacancy rates below 5%, are expected to keep property values and investor interest elevated. Changing legislation, the potential for interest rate volatility, and increased housing development may hinder some activity, but the consistent demand in this market should largely outweigh the impacts of these factors.

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