Apartment Rents Fall 8.1% in Santa Monica, Most in Los Angeles

Santa Monica’s rental market has undergone a sharp correction, posting the steepest decline among Los Angeles metro submarkets.

As of April, rents have fallen 8.1 percent year-over-year, according to Apartment List, the Santa Monica Daily Press reported. It’s a dramatic reversal from early 2025, when the Palisades fire drove Westside rents upward. Zumper’s data shows an even steeper 12 percent annual drop, while RentCafe reports a modest 0.4 percent decline for larger buildings.

The city’s median rent now stands at $2,328, down nearly $200 from a year ago and well below its March 2025 peak of $2,527. One‑bedroom units have fallen from $2,392 to $2,203, and two‑bedrooms went from $2,867 to $2,641 — declines consistent with the overall 8.1 percent slide.

Despite the downturn, Santa Monica remains among Southern California’s priciest markets, with rents still 7 percent above the L.A. metro median of $2,176. Newport Beach leads the region at $3,484, while Long Beach is the most affordable at $1,770.

Developers still love Santa Monica, with Trammell Crow planning 456 units near the airport and an LLC named 1655 Property looking to put 401 units near the Water Garden office complex.

This year’s rent decline follows three consecutive years of lower prices: negative 5.9 percent in 2023, negative 1.1 percent in 2024, and now negative 8.1 percent in 2025, erasing much of the 20 percent cumulative surge seen during the pandemic‑era boom of 2021–2022.

Analysts attribute the current slide to a combination of factors — an influx of new multifamily supply, strict rent‑control regulations and ongoing population outflows from the Westside. Smaller units, particularly studios and one‑bedrooms, have been hit hardest as competition intensifies from newly built inventory.

Countywide, rents have remained flat, with Los Angeles posting near‑zero change and California statewide rents edging up 1.1 percent. The USC Lusk Center’s Casden Forecast projects minimal growth through 2027, suggesting that Santa Monica’s correction may persist as developers deliver new projects and tenants continue migrating toward lower‑cost submarkets.

– Joel Russell