West Hollywood
West Hollywood is a highly walkable and predominantly renter-oriented multifamily market known for its cultural amenities, nightlife and prominent commercial corridors along Santa Monica and Sunset Boulevards. Its central location near Beverly Hills, Hollywood and other major employment and entertainment centers supports consistent renter demand. The apartment inventory ranges from older, value-oriented properties to newer luxury communities, while restrictive zoning, limited development sites and affordable-housing requirements constrain new supply. These barriers have kept inventory growth below the broader Los Angeles market and contributed to high rents. For investors, West Hollywood offers a combination of strong tenant demand, limited long-term supply and opportunities across both stabilized and value-add properties.
MARKET OVERVIEW
Source: CoStar | West Hollywood Multifamily | 2025
Units Delivered
93
Rent Growth (YoY)
0.3%
Average Cap Rate
5.2%
Vacancy Rate
5.5%
Average Price Per Unit
$373,608
Average Rent
$2,768
Absorption Rate
0.4%
Total Transactions
27
DEVELOPMENT PIPELINE
West Hollywood maintained a relatively restrained multifamily development pipeline during 2025. Four projects totaling 93 units were delivered, led by the 62-unit Skyview Sunset development. At year-end, eight projects containing 215 units remained under construction, equal to approximately 1.3% of the submarket’s existing apartment inventory. The largest active project was the 75-unit development at 8500 Santa Monica Boulevard, followed by the 48-unit Lexington Gardens and 31-unit Fairbank communities. Although construction activity continued, the pipeline remained modest relative to the overall market, reflecting West Hollywood’s limited development sites, zoning constraints and affordable-housing requirements.
TENANT PROFILE
West Hollywood has a predominantly renter-oriented population drawn to the city’s walkability, central location, nightlife, dining and cultural amenities. High home prices make renting the more accessible housing option for many residents, while the market’s diverse apartment inventory accommodates a range of budgets and preferences. Older one- and two-star properties represent most of the housing supply and provide comparatively attainable options, while three-star communities serve the middle of the market. A smaller luxury segment attracts renters seeking newer construction, premium finishes and amenity-rich living near West Hollywood’s major commercial and entertainment corridors.