Los Angeles Multifamily

Q3 2023 Los Angles Multifamily Sales Snapshot

With now 3 quarters of 2023 behind us, the Los Angeles multifamily market continues to manifest shifting dynamics based on the metrics indicated below taken from the past 3 months of this year.

The historically low interest rates experienced over the past decade which fueled a surge in real estate investment activity, allowed for increased transaction volume and heightened demand. However, as interest rates have continued to climb, the effects have been felt both locally and nationally – creating downward pressure on sales volume. Below is a snapshot report of Multifamily sales for transactions 5+ units, closed in Q3 2023, located in Los Angeles County. All data is aggregated from Costar.

LA County Apartment Sales Q3 2023
By the Numbers


# of LA County Multifamily Sales in Q3 2023
Down from 395 in Q3 2022 representing a 27.59% decline in number of sales.

$1.1 Billion

Total LA County Multifamily Sales Volume in Q3 2023
Down from $2.8 Billion in Q3 2022 representing a 60.71% decline in total deal volume.


Average LA County Multifamily Price per Unit in Q3 2023
Down from $355,308 in Q3 2022 representing a 21.92% decline in average Price per Unit.


Average LA County Apartment Sale Cap Rate in Q3 2023
Up from 4.3% in Q3 2022 representing a 40 basis point increase in Cap Rate metrics.

Looking forward:

  • The market shapshot above leaves little doubt that the LA multifamily market continues to face headwinds.  The ‘bid-ask’ spread (ie the price Sellers want versus the price that Buyers are willing to pay) remains wide. 

  • While many sellers are still seeking yesterday’s pricing, most buyers now require a discount in order to achieve targeted investment returns.

  • With the cost of debt rising and fewer banks lending in the market, cash deals remain king – with requests for seller-financed transactions also on the rise.
  • The LA Mansion tax continues to be a major source of concern for Sellers seeking to transact on deals $5+ Million, and will likely continue to suppress sales activity in the near term as owners have to bake in this additional closing expense.
  • Sales volume notwithstanding, there continues to be demand for multifamily property acquisitions.  As those in the market adjust their strategies to accommodate the changing landscape, new opportunities may arise.  Stay tuned.

By mrlamultifamily

I am a multifamily real estate specialist in Los Angeles.

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