Pasadena
Pasadena is one of the San Gabriel Valley’s most established multifamily markets, combining a vibrant urban core with attractive residential neighborhoods and convenient access to Downtown Los Angeles, Glendale and Burbank. Its apartment inventory ranges from older, value-oriented properties to newer luxury communities concentrated near major commercial and employment centers. Limited construction and restrictive development conditions help constrain long-term supply, while Pasadena’s well-maintained neighborhoods, amenities and regional connectivity continue to support renter demand. For investors, opportunities vary significantly by property quality and location, with pricing, vacancy and rent performance differing across the market’s older and newer housing stock.
MARKET OVERVIEW
Source: CoStar | Pasadena Multifamily | 2025
Units Delivered
46
Rent Growth (YoY)
1.2%
Average Cap Rate
4.8%
Vacancy Rate
4.8%
Average Price Per Unit
$322,314
Average Rent
$2,494
Absorption Rate
-0.7%
Total Transactions
52
EMPLOYMENT DRIVERS
Pasadena’s employment base is supported by education, scientific research, aerospace, healthcare, technology and professional services. Caltech and NASA’s Jet Propulsion Laboratory anchor the area’s research and innovation economy, while Pasadena City College, ArtCenter College of Design and local medical institutions contribute additional education and healthcare employment. The city’s growing biotechnology, engineering and deep-technology sectors further support skilled professional jobs. Downtown Pasadena, Old Pasadena and the South Lake district also generate employment through offices, retail, dining, hospitality and entertainment. Convenient access to Downtown Los Angeles, Glendale and Burbank expands the number of regional employment centers available to Pasadena residents.
TENANT PROFILE
Pasadena supports a broad renter base drawn to its established neighborhoods, active downtown, regional connectivity and access to major employment centers across Pasadena and the greater Los Angeles area. The market offers housing at several price points, ranging from older, value-oriented apartments to newer luxury communities, allowing it to serve tenants with differing incomes and housing preferences. Approximately 69% of the submarket’s units are classified as one- or two-star properties, while three-star and higher-end communities account for the remaining inventory. This variety supports demand from households seeking both comparatively attainable apartments and newer, amenity-oriented housing.