Los Angeles remains one of the most dynamic and resilient multifamily markets in the country. With a population of nearly 4 million in the city proper and over 13 million in the metro area, demand for rental housing continues to outpace supply across virtually every submarket.
For investors and building owners, understanding current market conditions is essential for making informed decisions about buying, selling, or holding apartment buildings in LA. Here's what The Group CRE is seeing on the ground right now.
Cap rates for Los Angeles apartment buildings vary significantly by submarket, building class, and unit count. Generally, well-located buildings in prime submarkets like West LA, Beverly Hills-adjacent areas, and parts of the Westside trade at lower cap rates reflecting stronger tenant demand and appreciation potential.
Value-add properties with below-market rents continue to attract aggressive buyer interest, particularly from 1031 exchange buyers and private investors seeking to reposition assets. Buildings with significant upside in rents often trade at premium pricing based on projected income rather than current cash flow.
Several Los Angeles submarkets deserve special attention from multifamily investors right now. Koreatown remains one of the most active trading markets, with high density and strong rental demand driving consistent investor interest. Hollywood and East Hollywood continue to see development activity alongside existing inventory sales.
The Mid-Wilshire corridor offers a mix of vintage and newer product, while areas like Silver Lake, Echo Park, and Highland Park have seen significant rent growth over the past several years. South LA submarkets including Inglewood and Hawthorne have benefited from infrastructure improvements and increasing institutional investor interest.
Occupancy across Los Angeles multifamily properties remains strong, generally above 95% in most submarkets. Rent growth has moderated from the rapid pace seen in previous years but continues on a positive trajectory, particularly for renovated units and properties in high-demand neighborhoods.
Owners who have invested in unit upgrades and common area improvements are seeing the strongest rent premiums, often achieving $200 to $500 per month above unrenovated comparable units in the same neighborhood.
If you own an apartment building in Los Angeles, the current market presents several strategic options. Sellers benefit from continued buyer demand, particularly from 1031 exchange capital and out-of-state investors attracted to LA's long-term fundamentals. Owners looking to hold can focus on value-add strategies to maximize current income.
For buyers, identifying off-market opportunities and moving quickly on well-priced deals remains critical in a competitive market. Working with a broker who has deep relationships and real-time market intelligence gives you a significant advantage.
Whether you're buying, selling, or evaluating your options, The Group CRE provides expert guidance backed by real transaction experience. Taylor Avakian and the team specialize exclusively in Los Angeles apartment building sales, giving our clients an edge that generalist brokers simply can't match.
Contact us today at (916) 996-4421 or taylor@thegroupcre.com for a confidential consultation about your multifamily investment goals.
Cap rates for LA apartment buildings typically range from 3.5% to 6% depending on location, building condition, and unit count. Prime Westside locations trade at lower cap rates while value-add properties in emerging submarkets may offer higher returns. Contact The Group CRE for current cap rate data specific to your submarket.
Los Angeles multifamily remains a strong long-term investment due to high rental demand, limited new supply, and consistent population growth. Market timing depends on your specific investment criteria and goals. The Group CRE can help you evaluate current opportunities and determine the right strategy for your situation.
