Southern California multifamily transaction activity accelerates from prior year

Southern California multifamily market highlights

• Multifamily operating conditions in Southern California softened during the past year, with the vacancy rate ticking higher while rents posted a modest decrease. Inventory growth accelerated, with developers completing approximately 21,600 units in 2025.
• The average vacancy rate across Southern California held steady from the third quarter to the fourth quarter, though there was a slight annual increase. Year over year, vacancy rose 10 basis points to 4.6%.
• Asking rents decreased by 0.8% during the fourth quarter to $2,486 per month. Rent growth in the earlier months of the year kept the annual decrease modest, with asking rents declining by just 0.4% in 2025.
• There was a considerable rise in multifamily investment sales in 2025, with the transaction count rising nearly 30% higher than in 2024. The median sale price in 2025 was $310,300 per unit, down 5% from last year.

Download the full report below to explore Q4 2025 trends in the following Southern California markets:

• Los Angeles
• Orange County 
• San Diego 
• Inland Empire