Los Angeles Multifamily Sales Soared in 2025

Multifamily anchored a rebound in investment sales in Los Angeles last year, as industrial fundamentals wobbled and office pricing splintered by submarket.

Overall deal activity across the city rose 11.1 percent last year, while dollar volume climbed 21.8 percent from 2024, the Los Angeles Business Journal reported, citing Avison Young.

There were 557 multifamily trades, valued at $6.5 billion, marking a 30.8 percent jump in dollar volume from 2024.

Rents are flat, but buying a home has become less affordable for Californians, despite stabilizing prices, because incomes haven’t kept pace, according to the Legislative Analyst’s Office.

That means more would-be homebuyers are forced to rent, one reason multifamily is seen as a lucrative long-term investment, Avison Young principal Erik Edeen told the outlet.

Land sales also increased by nearly 157 percent in Los Angeles County. The number of land deals ticked up by 3 percent last year. Total land sales amounted to about $500 million across 34 deals, indicating the deals are concentrated on larger, more significant sites.

The industrial deal count rose 18.7 percent year-over-year, but dollar volume fell 7.5 percent as rising vacancy, softer absorption and rent declines weighed on pricing.

Port volatility, tariff uncertainty and wide differences between asking prices and bids have also slowed trades. Some brokers view the deceleration in vacancy growth and the first stretch of positive net absorption since 2022 as early signs of stabilization, particularly in infill markets and the South Bay near the Ports of Los Angeles and Long Beach.

Office pricing for the middle 40 percent of trades ranged from $280 to $600 per square foot, compared with multifamily’s $270 to $380 range. Some downtown Class A towers have traded near or below $250 per square foot after a bruising basis reset, while creative campuses command north of $500.

Deal count and dollar volume decreased in the fourth quarter as summer deals dominated last year. Transactions decreased by 20.5 percent in deal count and 25.7 percent in dollar volume, per Avison Young.

— Chris Malone Méndez