Multi-Family Update: Is your local apartment market finally stabilizing?
Southern California multifamily values continued to shift during the first half of 2026—but the results varied dramatically by local market.
Your apartment property may have gained value, lost value, or barely moved depending on where you own, your unit mix, current rents, and what buyers are willing to pay today.
In this 2026 Southern California Multifamily Market Update, we analyze apartment sales, price per unit, CAP rates, GRMs, transaction activity and rental rates across the San Gabriel Valley, Pasadena, East Los Angeles, 605 and 710/91 Freeway Corridors, and the Inland Empire.
East San Gabriel Valley Multifamily Market
Azusa, Baldwin Park, Covina, El Monte, Glendora, La Verne, Monrovia, South El Monte, West Covina
- Price Per Unit: $263,000 | CAP Rate: 5.24% | GRM: 13.22
- The Implication: Average price per unit is down approximately 3.3%, transaction activity is pacing about 15% below last year and rents have softened.
- For Owners: Do not assume values have already turned.
- For Buyers: Lower pricing has not translated into meaningfully better income multiples, while rents have also softened.
Two-bedroom rents have taken the biggest hit, down almost 6%.
Nothing looks catastrophic, but I would not call this a recovery yet.
West San Gabriel Valley Multifamily Market
Rosemead, San Gabriel, Temple City
- Price Per Unit: $320,000 | CAP Rate: 4.66% | GRM: Approximately 15.3
- The Implication: Transaction activity is pacing approximately 29% ahead of last year, even though average price per unit is down about 4.5%.
- For Owners: Buyers and sellers appear to be getting closer on where values actually clear.
- For Buyers: More transactions create better price discovery, but rental performance remains mixed.
Owners may not love the new pricing, but the market is beginning to transact there.
605 Corridor Multifamily Market
Bellflower, Downey, La Puente, Montebello, Norwalk, Paramount, Pico Rivera, Whittier
- Price Per Unit: $248,000 | CAP Rate: 5.36% | GRM: 12.5
- The Implication: Average price per unit is down about 4%, but rents have held up considerably better.
- For Owners: Compare your property’s actual rent performance with the broader pricing decline.
- For Buyers: Values have softened more than rents, so focus on whether today’s pricing produces an acceptable return at current financing costs.
Three-bedroom rents are actually slightly higher than they were at the beginning of 2025.
Values have softened more than rents.
710/91 Corridor Multifamily Market
Bell, Bell Gardens, Commerce, Cudahy, Huntington Park, Maywood, South Gate
- Price Per Unit: $196,000 | CAP Rate: 5.84% | GRM: Approximately 11.3
- The Implication: Average price per unit is down almost 6%, while rents have declined across every unit type we track.
- For Owners: Falling market rents can reduce the upside buyers assign to your property, and ultimately what they are willing to pay.
- For Buyers: Current rents, local rental regulations and realistic future income growth need to be part of the underwriting.
Studios are down almost 9%, one-bedrooms almost 5%, and two- and three-bedrooms close to 4%.
Here, part of the pressure on value may be coming from the income side of the equation.
East Los Angeles Multifamily Market
Boyle Heights, East Los Angeles, El Sereno
- Price Per Unit: $177,000 | CAP Rate: 5.43% | GRM: 12.11
- The Implication: Average price per unit is essentially flat, while rents have remained relatively stable.
- For Owners: Stabilization does not mean values are suddenly rising again.
- For Buyers: Relatively affordable pricing needs to be weighed against localized rent control and its impact on future income growth.
One-, two- and three-bedroom rents are basically flat.
I am not saying East Los Angeles is suddenly booming.
But after the repricing already experienced there, we may finally be seeing some stabilization.
West Inland Empire Multifamily Market
Chino, Claremont, Montclair, Ontario, Pomona, Upland
- Price Per Unit: Approximately $233,000 | CAP Rate: 5.17% | GRM: 11.44
- The Implication: Sales averages are relatively flat, but rental performance varies significantly by unit type.
- For Owners: Know how your unit mix compares with current rental trends.
- For Buyers: Underwrite rents by unit type, not just the corridor average.
Studio rents are down almost 12% and one-bedrooms almost 9%, while two- and three-bedroom rents are down only about 2.5% to 3%.
Unit mix matters.
East Inland Empire Multifamily Market
Bloomington, Colton, Fontana, Rialto
- Price Per Unit: Showing a decline of almost 24% | CAP Rate: Approximately 7% | GRM: Approximately 10
- The Implication: The headline numbers look dramatic, but only three properties traded through June.
- For Owners: Do not assume three transactions define your property’s value.
- For Buyers: Treat the sales averages cautiously until more properties trade.
Rental declines are much less dramatic, ranging from less than 2% for one-bedrooms to about 6% for studios.
Three sales do not make a market.
Pasadena Multi-family Market
Pasadena, South Pasadena, Sierra Madre
- Price Per Unit: $303,000 | CAP Rate: 5.65% | GRM: 12.72
- The Implication: Average price per unit is down almost 8%, even though transaction activity is pacing approximately 10% ahead of last year.
- For Owners: Stable rents alone do not guarantee previous pricing will return.
- For Buyers: With localized rent control limiting future rent growth, the return you receive on day one becomes increasingly important.
Two-bedroom rents are up almost 2%, while three-bedroom rents are basically flat.
So the decline in price per unit cannot simply be explained by collapsing rents.
Buyers are writing checks. Just not at last year’s prices.
Are Southern California Apartment Values Finally Stabilizing?
There is no single answer.
East Los Angeles is showing early signs of stabilization.
The 605 Corridor is seeing additional pricing pressure even though rents have held up relatively well.
Pasadena is still repricing.
The 710/91 Corridor has pressure on both values and rents.
And in the Inland Empire, unit mix can dramatically change the rental story.
Different markets. Different unit mixes. Different outcomes.
Buyers have not disappeared.
They are looking at debt, actual rents, expenses and the return they can earn on their money before deciding what they are willing to pay.
That is why I would describe the market as still being in price discovery.
Not a crash.
But I do not think the data supports calling it a recovery yet either.
Don’t Build Your Strategy Around the Fed
The Fed has held its benchmark rate at 3.5% to 3.75%, while the 30-year Treasury recently reached approximately 5.2%.
Long-term commercial real estate financing is heavily influenced by Treasury yields.
So even if the Fed eventually lowers short-term rates, that does not guarantee apartment financing suddenly becomes inexpensive again.
If your strategy is simply to wait for rates to come down and values to come back, you need to pressure-test that assumption against today’s numbers.
Can Apartment Owners Still Count on Rent Growth?
For years, many owners assumed that even if values fell temporarily, rents would continue rising and eventually help values recover.
The latest data shows why that assumption deserves another look.
In several markets, rents did not increase.
They declined.
And smaller units have generally experienced more pressure.
If you are underwriting your property based on 4%, 5% or 6% annual rent growth while your local market is flat or down, you may be evaluating a very different investment from the one you currently own.
Don’t confuse waiting with having a strategy.
Value. Income. Debt.
Before deciding whether to hold, improve, refinance, sell or complete a 1031 Exchange, pressure-test three things:
Value
What is the property really worth based on transactions happening right now?
Income
Where are your rents compared with today’s market? What is your loss-to-lease?
Debt
When does your loan mature, and what happens to cash flow if you refinance using today’s terms?
Once you understand those three numbers, you can make a decision based on current information.
Hold. Improve. Refinance. Sell. Complete a 1031 Exchange.
Or potentially do absolutely nothing.
What Is Your Southern California Apartment Building Worth in 2026?
Broad market averages cannot answer that question.
Your local transactions, current rents, debt and the returns buyers are demanding matter far more.
If you want to know whether your apartment property gained, lost or held value during the first half of 2026, reach out.
We can compare your property, rents, debt and recent comparable sales with what is actually happening in your local market today.
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Educational only; not legal, financial or tax advice. Consult your advisors.
FAQs
Are Southern California apartment values stabilizing in 2026?
Not uniformly. East Los Angeles is showing early signs of stabilization, while Pasadena, the 605 Corridor, the 710/91 Corridor and other areas continue to show varying levels of price or rental pressure.
Why can apartment values fall even when rents are stable?
Apartment values depend on more than rents. Buyers also consider financing costs, operating expenses, CAP Rates and the return they can earn on their money.
Why does unit mix matter?
Different unit types can experience very different rental trends. In the West Inland Empire, studios and one-bedrooms have experienced considerably more pressure than larger units.
Will lower Fed rates automatically increase apartment values?
Not necessarily. Long-term commercial real estate financing is also influenced by Treasury yields, so lower short-term rates do not automatically mean cheaper apartment financing.
What should apartment owners evaluate right now?
Start with three things:
Value. Income. Debt.
Related Market Updates & Resources
Southern California Multi-Family Update Q1 2026
Compare the Mid-Year data with where the market stood earlier in 2026.
READ THE Q1 2026 MARKET UPDATE
Keep, Trade, or Exit?
Evaluate whether a property still fits your current portfolio and investment goals.
Play Offense With Debt
Learn why current debt terms and upcoming maturities need to be part of your investment strategy.
August 27 Multi-Family Investor Webinar
The Mid-Year Update looks at what has already happened. On Thursday, August 27 at 12 PM, we’re bringing together attorneys, tax strategists, lenders, real estate experts, and market forecasters to discuss what may happen next.
REGISTER FREE FOR THE AUGUST 27 WEBINAR
AUTHOR: Kristopher German
Vice President of Investments, RE/MAX Commercial Division
CEO, The Apartment Dealer