Sherman Oaks
Sherman Oaks is an established San Fernando Valley multifamily market with a large base of value-oriented apartments and a smaller but growing collection of newer luxury communities. Historically limited construction has helped support stable renter demand and long-term rent growth, although recent deliveries have temporarily increased vacancy within the market’s higher-end inventory. Sherman Oaks continues to offer a range of investment opportunities, from older properties with renovation potential to newly developed institutional-quality assets. Looking ahead, near-term performance will be influenced by the lease-up of recently completed communities and an additional 420 units currently under construction.
MARKET OVERVIEW
Source: CoStar | Sherman Oaks Multifamily | 2025
Units Delivered
272
Rent Growth (YoY)
-0.4%
Average Cap Rate
5.6%
Vacancy Rate
6.4%
Average Price Per Unit
$302,304
Average Rent
$2,423
Absorption Rate
0.1%
Total Transactions
34
EMPLOYMENT DRIVERS
Sherman Oaks benefits from a diverse local and regional employment base. Ventura Boulevard serves as the neighborhood’s primary commercial corridor, supporting professional offices, healthcare providers, financial services, retail, dining and other service-oriented businesses. The area’s proximity to Studio City and Burbank provides access to entertainment and media employment, while nearby Encino contains additional healthcare, legal and professional-service firms. Connections to the 101 and 405 freeways also place Sherman Oaks within commuting reach of employment centers across the San Fernando Valley, the Westside and central Los Angeles, helping sustain multifamily demand from residents working throughout the region.
TENANT PROFILE
Sherman Oaks serves a broad renter base through a diverse mix of apartment types and price points. Approximately two-thirds of the submarket’s inventory consists of one- and two-star properties, providing comparatively attainable options within the central San Fernando Valley. Three-star communities account for roughly one-quarter of the market, while newer four- and five-star properties serve renters seeking modern finishes, upgraded amenities and larger community environments. This range allows Sherman Oaks to accommodate tenants with varying budgets and housing preferences, from residents prioritizing established neighborhood apartments to those seeking newer luxury housing.