LA Multifamily Occupancy Drops as Supply Floods the Market
Supply is starting to flood the market in Los Angeles —weighing on the first quarter multifamily fundamentals. Deliveries in total reached 3,001 units during the three months, up from the 2,890 units seen a year ago, a market report from Colliers finds.
Most of the supply was seen in the Hollywood/Mid-Wilshire and Westside submarkets, which saw 915 and 802 units, respectively.
"Total units delivered in 2025 reached 12,727, a 24% increase compared to 2024," the CRE firm wrote.
"Since Q1 2021, Los Angeles County has delivered 58,576 units to the marketplace."
As a result, occupancy dropped by 110 basis points year-over-year to 93.9 percent. The rent trends were also not favorable, with monthly averages dropping by 0.4 percent to $2,486.
Also, demand did not exceed the supply, with net absorption coming in at just 2,013 units in the first quarter. Also, demand was about 1,000 units less than it was at the end of the first quarter in 2025.
Yet, one green shot showed — centered around investment activity. In the year-to-date through March, sales volume climbed by 2.4 percent to $481 million. However, the average price per unit did fall, dropping by three percent to $398,469.
Another positive trend: construction is slowing. Just 24,081 units were underway in the first quarter, down from the 26,835 units seen in the same period in 2025. Of that amount, 3,956 new units broke ground in the first quarter.
Source: GlobeSt/ALM