Multifamily inventory is outpacing sales across several Los Angeles submarkets, increasing competition among sellers and reinforcing the importance of realistic pricing.

The Tuvia Group’s Los Angeles multifamily market update examines Q3/Q4 2026 cap rates, new housing supply, transaction volume, loan resets and emerging acquisition opportunities across key submarkets.

The 2026 interest rate for qualifying security deposits at Los Angeles RSO properties is 3.03%. Here is what multifamily owners should know.

A week ago, the Los Angeles Controller’s Office released what it called the “Top 100 Rental Properties” list in LA. As I started going through the addresses, I noticed something interesting. I recognized many of the properties not because I was involved in them, but because a surprisingly significant number of them have traded over the past few years. Roughly 16% of the buildings on the list have sold within the last 4 years. That raises a bigger issue. Instead of focusing on

The ADU Parking Tradeoff in LA Multifamily A lot of LA multifamily owners are adding ADUs right now, but there’s no clear consensus on the best strategy. I’m seeing two very different approaches: Some owners are eliminating parking entirely to maximize unit count Others are adding a few ADUs while preserving most of their existing parking There’s no “right” answer. It’s a classic short-term vs. long-term tradeoff. Short term: Units without parking are generally harder to leas

The biggest risk in LA multifamily today isn’t interest rates, rent control, or new supply. It’s habitability claims. The tough part is this: There doesn’t even need to be a real habitability issue to get pulled into a sizable lawsuit. We’re seeing more tenant attorneys actively targeting buildings, finding small issues, and turning them into leverage. Most owners don’t realize how exposed they are until they’re already dealing with it. This is no longer just a legal issue. I

100% of the time I only sell Los Angeles apartment buildings. I don’t try to cover other product types, and I don’t try to cover other markets outside of Los Angeles. In LA where every deal is hyper local and constantly shifting, being fully focused matters. I get calls all the time to sell office, retail, or assets outside of Los Angeles and I say no. Not because I can’t do it, but because my clients are better served when I stay focused on what I actually specialize in. Bei

A new construction multifamily investor came into my office this week to hear our marketing pitch on the value of one of his Hollywood buildings. After I shared the valuation, he pulled up ChatGPT and said: “Chat told me cap rates are between 4–5%, not 6% for new product.” What I took from that: Chat and any AI model is only as good as the data you give it. With no real inputs, it can actually hurt valuations and underwriting. Especially in a market like LA where everything i

Where are the Good Deals? Los Angeles County currently has a massive amount of inventory across nearly every submarket. As of today, there are 1,279 multifamily buildings on the market. The first quarter of 2025 was quiet, with only 320 transactions—a significant drop from 477 deals in Q4 2024. The wildfires earlier this year contributed to a “pencils down” environment among many buyers. However, select listings are gaining strong momentum—especially well-located value-add pr

Has Los Angeles Been Derisked? With the election behind us and vacancy control now defeated for the third time by a large margin, local multifamily transactions should begin to normalize. The risk of New York style vacancy control is in the rearview mirror allowing buyers to come back to value-add opportunities. For most of 2024, upside and value add were pretty much gone as buyers were focusing on just current cash flow and would hesitate to underwrite rental upside through

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What is SB1211 & How Does it Impact my Multifamily Portfolio? SB1211 allows up to 8 additional ADUs on multifamily properties not to exceed the current unit count. For example, if you have a 5 unit building you could, under SB1211, add an additional 5 units. This is very positive for buyers having a tougher time underwriting Los Angeles multifamily with higher interest rates. The most ideal multifamily properties to take advantage of the density allowed by SB1211 would be pro

Is LA Multifamily Trading? In the first quarter of 2024, 3,041 units were sold, which is pretty much on par with the number of units sold during the first quarter of 2009 when the capital markets were frozen. Los Angeles multifamily is unique to other markets as the disastrous ULA transfer tax is to blame for the larger sales declines in the marketplace. The median sales price for multifamily over 5 units in LA County during the first quarter was $2.15 million. It is interest

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What Rent Increase are We Getting for RSO Units? After four years of no rent increases, the LA city council had a hearing to freeze rent increases another 6 months to July which was thankfully shut down. Starting in February 2024, landlords will be allowed a 4% rent increase on units under RSO. The original proposal was for a 7% rent increase which many believe really should have been a 10%+ increase to make up for significant increases in expenses since 2020 while rents rema

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