Multifamily Rents Lag in Los Angeles

Stable Demand, Mixed Growth

According to Multi-housing News, Los Angeles multifamily properties ended 2025 with modest shifts in fundamentals. Average asking rents for stabilized units slid 0.3% on a trailing three-month basis through December, settling at $2,628—squarely in line with national figures. Despite this flat rent performance, occupancy in stabilized assets stayed firm at 95.9%, still well above the US average.

Supply Growth Eases

The metro saw three consecutive years of rapid completions, totaling over 37,000 units. However, new development is tapering off. By year-end, 25,754 units remained under construction and developers began work on 6,836 new units, signaling a slowdown in future supply additions for the Los Angeles multifamily market.

Economy & Construction Drivers

Employment in Los Angeles grew just 0.5% year-over-year through September 2025, trailing the national pace. The unemployment rate edged higher at 5.3%. Leading job growth came from education and health services, though five sectors posted net losses. Major infrastructure efforts continue, highlighted by a $2.6B Los Angeles Convention Center expansion launched last fall ahead of the 2028 Olympics, alongside other metro-wide projects. Meanwhile, activity in the region’s industrial sector has been picking up, with recent sales signaling renewed investor interest in logistics and warehouse assets across the metro.

What’s Next

Market watchers expect the Los Angeles multifamily sector to remain balanced in early 2026. While rent growth shows little momentum, strong occupancy and slowing new supply provide stability for owners and investors seeking long-term multifamily exposure in the metro.