Q2 2025 San Fernando Valley Multifamily Market Report
Highlights
- The San Fernando Valley multifamily market recorded 1.3 percent rent growth in the second quarter, nearly doubling the Los Angeles metro’s 0.7 percent.
- Properties across the Valley are steadily selling, with total sales reaching $586 million, as investors show growing interest in the area—often favoring it over more expensive core metro markets.
- Van Nuys, Sherman Oaks, and North SFV are leading development zones, driven by transit access, luxury project demand, and available land with flexible zoning.
By the Numbers
- Sales Volume: $586M
- Cap Rate: 5.04%
- Market Sale Price Per Unit: $286,033
- Vacancy Rate: 3.85%
- Rent Growth: 1.3%
- Market Asking Rent Per Unit: $1,991
- Unit Under Construction: 1,756
- Unit Absorbed: 301
- Unit Delivered: 145 | Q2 2025 | Source: CoStar Group
Market Performance
The multifamily sector remained solid throughout Q2 2025, supported by a balanced supply-demand environment and a stabilizing vacancy rate of 3.85%. With minimal drag from new deliveries, renter demand held firm—approximately 145 units were absorbed, even as 301 new units entered the market. Quarterly rent growth of 1.3% reflects the Valley’s relative affordability and measured pace of new construction, with particularly strong occupancy trends in Central SFV and North Hills sustaining leasing momentum.
Leasing conditions remained steady across most product types, with Class B and well-located Class A properties attracting the strongest tenant demand. A limited construction pipeline in several submarkets has kept concession pressure low, benefiting landlords and stabilizing pricing. Overall, the Valley remains fundamentally well-positioned, with healthy market performance and a competitive edge within the broader Los Angeles rental landscape.
Market Asking Rent Per Unit and Rent Growth
Source: CoStar Group Inc.
Under Construction
The San Fernando Valley’s supply pipeline is moving at a healthy, controlled pace, with 1,756 units currently under construction. Development is concentrated in key areas like Van Nuys, Sherman Oaks, and North SFV, where aging commercial properties, transit-connected corridors, and targeted zoning have created new opportunities for multifamily growth. With absorption outpacing deliveries, the pipeline remains manageable—supporting rent stability and reinforcing the region’s long-term market health.
Net Absorption, Net Deliveries, and Vacancy
Source: CoStar Group Inc.
Sales
Sales activity remained solid in Q2 2025, with $586 million in multifamily transactions recorded across the San Fernando Valley. Average pricing fell to $286K/unit, reflecting post-peak normalization while value-add and workforce housing drew strong demand. Cap rates rose to 5.04%, but affordability and stability kept the Valley attractive over core Los Angeles submarkets. Active bidding and consistent deal flow continue to signal confidence in the area’s long-term performance.
Sales Volume and Market Sale Price Unit
Source: CoStar Group Inc.
