Santa Monica
Santa Monica is one of Greater Los Angeles’ most desirable and expensive multifamily markets, combining coastal living with a strong concentration of employment, dining, shopping and recreational amenities. Approximately 70% of local households rent, supporting a substantial and diverse apartment market ranging from older rent-controlled properties to newly constructed luxury communities. Development increased following revisions to the Downtown Community Plan, although new deliveries have recently placed pressure on vacancy and rental performance. Despite these near-term supply challenges, Santa Monica’s limited land availability, affluent population, coastal location and enduring appeal continue to support its long-term position as a premier Los Angeles rental and investment market.
MARKET OVERVIEW
Source: CoStar | Santa Monica Multifamily | 2025
Units Delivered
320
Rent Growth (YoY)
-0.2%
Average Cap Rate
5.7%
Vacancy Rate
8.6%
Average Price Per Unit
$380,705
Average Rent
$3,544
Absorption Rate
-0.2%
Total Transactions
59
DEVELOPMENT PIPELINE
Santa Monica recorded considerable multifamily development activity during 2025, with 320 units delivered across two projects. The largest completion was the 280-unit 700 Broadway development, followed by the 40-unit Willow Santa Monica community. These deliveries increased the submarket’s apartment inventory by approximately 1.2%. At year-end, four additional projects totaling 473 units remained under construction. Tishman Speyer represented the largest share of the active pipeline with three developments totaling 287 units, while Cypress Equity Investments was developing the 186-unit project at 234 Pico Boulevard. This new supply contributed to increased vacancy and additional competition within Santa Monica’s luxury rental segment.
TENANT PROFILE
Santa Monica supports a highly educated and comparatively affluent renter population drawn to its coastal setting, employment base and extensive dining, shopping and recreational amenities. Approximately 70% of local households rent, making tenants a central component of the city’s housing market. The apartment inventory serves several renter segments: older one- and two-star properties provide comparatively attainable options, three-star communities serve the middle of the market, and luxury developments attract households seeking modern finishes and premium amenities. Although Santa Monica remains one of Greater Los Angeles’ most expensive rental markets, its housing variety accommodates tenants with differing incomes, lifestyles and housing preferences.