Sale Comps Becoming Less Relevant in Multifamily Underwriting

After 16+ years selling multifamily in LA, this is one of the biggest shifts I’ve seen in this current market:

Sales comps are becoming less relevant. In a market with elevated inventory especially for RSO deals pricing off a comp from 3–6 months ago is often inaccurate. That market no longer exists.

Buyers aren’t underwriting to past sales. They’re underwriting to today’s competition.

“What else can I buy right now?” is the only question that matters.

The new comp is active inventory.

Sellers still anchored to old comps are missing the market which is why we’re seeing more price reductions, longer days on market, and a widening gap between expectations and reality.