Developers Keep Building as LA Rents Flatten
The Los Angeles apartment market ended 2025 in a similar fashion to how it started the year, with sluggish-to-flat rent growth and solid supply gains, according to Yardi Matrix.
Advertised asking rents ticked down 0.3%, on a trailing three-month basis through December, to an average of $2,628, on par with the national figure.
Occupancy for stabilized assets remained solid at 95.9% in November, 130 basis points above the U.S. average, despite significant supply expansion.
The market continues to see deals. Developers had 25,754 units under construction at the end of last year and broke ground on 6,836 units.
Among them, High Street Residential (HSR), the residential subsidiary of Trammell Crow Company (TCC), and JV partner Haseko North America, Inc., last week broke ground on Jules San Pedro, an eight-story mixed-use residential community located in the San Pedro Waterfront Arts District at the gateway to the Port of Los Angeles.
The residential community is on track to be completed in Q2 2028, in time for the Olympics.
The asset at 155 W. 6th Street will feature 281 market-rate residences and 1,276 square feet of ground-floor corner retail space on a 1.29-acre full city block, directly adjacent to Piazza Miramare and within walking distance of the Little Italy district's growing collection of dining, retail, and fitness offerings.
It is designed by KFA Architecture with Westport Construction serving as the general contractor.
Jules San Pedro is HSR's second multi-family development in the Downtown San Pedro Waterfront Arts District. Vivo on Harbor opened there in February 2025.
Also, $44 million in financing is in place for two luxury multifamily properties in Los Angeles, IPA Capital Markets announced this week.
Moderno Axis, a 126-unit apartment complex located at 7650 Van Nuys Boulevard in the city's Van Nuys neighborhood, received $28,305,000 in financing, and $15,725,000 was sourced for Moderno La Granada Hills, a 54-unit apartment community with additional retail space located at 17454 Chatsworth Street in the Granada Hills neighborhood.
"The Los Angeles multifamily market demonstrated resilience in 2025 despite modest rent headwinds, with transaction activity reflecting strong investor confidence in the region's long-term fundamentals," Dillon Bergum, Senior Director, JLL, told GlobeSt.com.
"We saw pricing hold firm across quality submarkets, particularly in transit-adjacent and amenity-driven locations, as the region's significant discount to homeownership and robust income growth projections continue to support sustained rental demand."
He said that with the development pipeline moderating to nearly half its previous pace and Los Angeles delivering the second smallest share of new inventory among West Coast markets, supply-demand dynamics are positioned to tighten moving forward.
Source: GlobeSt/ALM