2025 Mid-Year Multifamily Market Trends in Los Angeles

Understanding the Numbers, the Movement, and the Industry Leaders Driving It All

The real estate market is always evolving and when it comes to multifamily properties in Los Angeles, 2025 is proving to be a pivotal year.

At Strategic Growth Real Estate, our goal is to help both property owners and renters understand what's happening behind the scenes so they can make smart, informed decisions. This report offers not just the data, but also the meaning behind the numbers along with a closer look at the major players who are shaping the city's housing future.

What Is the Multifamily Market and Why Does It Matter?

When we talk about "multifamily," we're referring to residential properties designed for more than one family to live in like apartment buildings, duplexes, and large housing complexes. In Los Angeles, this sector is especially important because:

• Over 60% of Angelenos rent, and the majority live in multifamily buildings.

• It’s one of the most active sectors for real estate investors, developers, and asset managers.

• Multifamily trends influence everything from rent prices to housing availability to urban planning.

That’s why tracking this sector gives us deep insight into the overall health and direction of the housing market.What’s Happening in 2025?

A Stabilizing Market with Cautious Optimism

According to the Q2 2025 report from Kidder Mathews, the Los Angeles multifamily market is showing signs of stability, even as development slows and investment strategies shift slightly.

Here’s a snapshot of key indicators:

What does this mean?

• The market is balancing out: Properties being built are closely matching the number being rented.

• Rents are rising modestly, a sign that landlords are able to hold pricing without seeing major tenant pushback.

• Cap rates (returns on investment) are improving, which makes investing in rental housing more attractive again.

• Fewer new projects are breaking ground, which may keep supply limited in 2026 and beyond.

Where Are the Big Projects?

Despite a slowdown in new construction, several major developments are still under way. These new units are being built in key neighborhoods that offer walkability, transit access, and economic opportunity.

Top Projects Under Construction:

These developments are mostly luxury and market-rate properties, meaning they’re built for renters who can afford higher-than-average rents often with amenities like gyms, lounges, and rooftop decks.

The Big Players Behind the Market

Understanding who owns and develops multifamily properties is key. These firms don't just manage apartments they shape how much we pay, where housing is built, and what kind of experience tenants get.

Here’s a quick look at the major players active in Los Angeles as of mid-2025:

Additional key developers building in 2025:

• Jamison Properties (1055 W 7th St – 685 units)

• Trammell Crow Residential (Alexan West End – 750 units)

• Onni Group (Olympic + Hill – 580 units)

These firms specialize in large-scale, professionally managed housing and have the financial backing to withstand market fluctuations. Some, like Community Preservation Partners, focus on preserving affordable housing, while others, like Onni, develop luxury high-rises.

Why This All Matters for Landlords and Tenants

If you’re a landlord or investor:

• Cap rate growth and slightly lower sale prices per unit may signal a good time to buy or refinance.

• Reduced competition from new builds in 2026 and 2027 could keep vacancy rates low for stabilized buildings.

• Partnering with a local property manager (like us) can help increase tenant satisfaction and long-term income.

If you’re a renter:

• Rents are rising slowly so signing a lease now could lock in a better rate.

• New inventory will bring more choice, but mostly at higher price points.

• Older buildings may offer better value, especially if professionally managed and recently renovated.

Conclusion

The Los Angeles multifamily market in mid-2025 is steady, active, and being shaped by large institutional players who continue to bet on the city’s long-term growth. Despite slower construction starts, investor interest remains high, and tenant demand is keeping vacancy low.

At Strategic Growth Real Estate, we help both owners and tenants navigate this landscape with clarity and confidence. From full-service property management to smart investment strategies, we’re here to help you thrive—wherever you stand in the real estate journey.

Source:Kidder Mathews, Los Angeles Multifamily Market Research – Q2 2025.https://kidder.com