Q1 2025 Hollywood/Mid-City Multifamily Market Report
Market Overview
The Hollywood/Mid-City multifamily market entered 2025 in a state of guarded optimism, with vacancy rates marginally improving and rent growth returning to positive territory after a challenging 2023. Investor interest showed strong momentum, as total Q1 2025 sales surged across several submarkets, led by the 90036 and 90048 zip codes. New deliveries were minimal, helping to ease supply-side pressures and stabilize occupancy. While rent concessions remain relatively low, affordability constraints continue to cap upside in several high-end areas. The year is off to a resilient start, but fundamentals remain patchy across submarkets, reflecting varying levels of renter demand and investor sentiment.
- Vacancy improved in several submarkets: particularly in 90016, where vacancy dropped from 5.2% to 3.9% year-over-year.
- Rent growth rebounded: 90036 bounced back from -3.2% in Q1 2024 to a strong 0.9% growth in Q1 2025.
- Robust Q1 sales volume: 90036 and 90048 led all zip codes, together accounting for over $91 million in sales.
- No new starts, limited deliveries: Construction remains cautious; only 78 units were delivered across the market.
- Absorption improved substantially: The submarket posted 177 units absorbed in Q1 2025, signaling stronger rental demand.
Vacancy & Occupancy
Vacancy averaged 5.8% in Q1 2025 across Hollywood/Mid-City.
The vacancy rate saw a slight improvement from 6.0% in Q1 2024 and 6.1% in Q3 2024, indicating a slow but steady path to stabilization. The most significant vacancy compression occurred in 90016, which dropped by 130 basis points year-over-year, from 5.2% to 3.9%, reflecting renewed renter interest. However, 90046 and 90048 continue to hover about 5.8%, signaling lingering softness due to either unit mix or elevated rents. Occupancy rebounded slightly to 94.2%, supported by restrained new deliveries and modest absorption gains. Although vacancy remains above the market-wide L.A. average of ~4.8%, the submarket is trending in the right direction.
Rent & Concessions
Average asking rents increased modestly to $2,633/unit.
Asking rents increased modestly, up 0.3% YOY and reversing the -1.5% decline seen in Q1 2024. Rent recovery remains uneven. The presence of both luxury and legacy product types creates a bifurcated market: concessions remain minimal at 0.6%, but price-sensitive submarkets may struggle to push rents further.
By the Numbers
- Units Under Construction: 2,077
- Units Delivered: 78
- Vacancy Rate: 5.8%
- Asking Rent Per Unit: $2,633
- Asking Rent Growth (YOY): 0.3%
- Average Price Per Unit: $420,006
- Sales Volume: $178,954,599 | Source: CoStar Group
Sales Activity & Pricing
Investor sentiment rebounded in Q1 2025, with total sales volume reaching $120.3M, compared to just $38.5M in Q1 2024. This jump reflects renewed capital markets activity, especially for stabilized or value-add assets in price locations.
- 90036 led with $70.3M in Q1 2025, a more than 7x increase from Q1 2024.
- 90048 and 90046 followed, with $20.7M an d$14M, respectively.
- Even 90016 saw a notable rise, from $1.5M in Q1 2024 to over $7.1M in Q1 2025.
Price per unit averaged $420,006 in Q1 2025, up from $286,613 a year ago, but still roughly 20% below 2022 peak levels. Pricing trends reflect renewed investor optimism, tempered by higher financing costs and recalibrated risk expectations.
Construction & Deliveries
Developers remain cautious. No new construction starts were recorded in Q1 2025, continuing a trend that began in 2024. This restraint is helping to rebalance supply and demand dynamics. The region has 2,077 units under construction, mostly concentrated in 90016 and 90019. Deliveries totaled just 78 units for the quarter, compared to 243 in Q1 2024—a meaningful pullback.
- 90016 and 90048 led Q1 2025 deliveries, contributing 17 and 23 units, respectively.
- 90036 and 90069 saw no new deliveries, despite having significant construction pipelines.
