Los Angeles Multifamily Report – June 2025
Asking rents are improving, but the economy is decelerating.
Los Angeles fundamentals faced a balancing act at the start of the second quarter, as the economic impact of tariffs remained uncertain. Average advertised asking rents grew 0.2 percent, on a trailing three-month basis through April, on par with the nation, to $2,652, marking two consecutive months of recovery. Even after four years of strong supply growth, occupancy in stabilized assets remained elevated, at 96 percent as of March, ahead of the 94.4 percent U.S. figure.
Employment gains slowed to 0.4 percent through February, less than half the 0.9 percent U.S. figure. Area unemployment mirrored the slowdown, clocking in at 4.8 percent as of March, 60 basis points above the U.S. rate. Nearly all sectors shed jobs over the 12 months ending in February, for a combined loss of 3,200 net positions. The only two sectors that gained jobs were education and health services (48,000) and government (9,100). To aid California’s economic recovery, the governor launched a new initiative, which will invest at least $245 million in key sectors and projects.
Developers had 29,520 units under construction across the metro as of April. However, completions during the first four months of the year signal a potential slowdown, with 2,924 units, or 0.6 percent of existing stock, coming online. Yardi Matrix expects some 11,000 units to come online this year, in line with the average recorded since 2017.
