LA Multifamily Investment Had Its Busiest First Half Since 2022 — West LA Led the Way

Los Angeles apartment buildings are changing hands at a pace not seen in years. The first half of 2026 marked the most active opening six months for multifamily investment sales in Los Angeles since 2022, according to Northmarq's Q2 2026 Greater Los Angeles market report published Sept. 25.

The pricing detail matters: the median sale price rose 18% to $368,800 per unit. Properties trading this year were on average 10 years newer than those that sold in 2025, which helps explain part of the jump. Class A assets recorded the sharpest gains, with the median sale price rising 35% year to date to $495,000 per unit, and Downtown Los Angeles pricing rebounded sharply off last year's lows. West Los Angeles was especially active — more properties changed hands there in the first half than in all of 2025. Across all asset classes, cap rates increased 30 basis points year to date to 5.9%.

Operating conditions are holding steady rather than booming. Since the start of the year, net absorption has totaled roughly 3,200 units, just ahead of the roughly 3,000 new units delivered — enough to keep vacancy increases at bay and let operators push rents slightly higher. Class A asking rents rose 0.4% in the second quarter to $3.66 per square foot, while Class B and C combined rose 0.2% to $2.58. Downtown LA was the main exception: vacancy rose and rents declined there as a wave of new deliveries hit.

For South Bay investors, the report lands alongside a local data point: a fourplex on Camino de la Costa in Redondo Beach just sold at a record $719,875 per unit. The broader message matches — well-located, non-rent-controlled small multifamily in the beach cities is trading like a trophy asset, and investors are willing to accept 5.9% cap rates to own it.

The practical read: capital is flowing back into LA apartments, but it's choosy — newer, well-located assets are commanding the premiums while Downtown's supply wave shows what happens when too much inventory arrives at once.

Source: Northmarq — https://www.northmarq.com/insights/insights/los-angeles-multifamily-transactions-accelerate-through-midyear-q2-2026

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