Monthly multifamily market intelligence for local, state, national, and global context. Published by NVest Analytics. Every figure is sourced and dated.
November 2026
Los Angeles MSA. Multifamily
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The Month in Three Parts
How We Got Here
Los Angeles stayed a top liquidity market: $9.3 billion traded over the trailing 12 months, up 35.2%, with Q2 volume at $2.56 billion, up 39.3% year over year [1][2].
The rate backdrop moved against sellers, then eased: the 10-year Treasury hit 5.24% on Oct 1 before falling to 4.94% on Oct 30, while SOFR reached 3.95% on Oct 30 [3][4][5].
Agency debt repriced ahead of fundamentals: the 5-year fixed quote stood at 6.38% on Oct 26, about 100 basis points above the Q2 average cap rate of 5.37% [6][1].
Supply kept thinning: Los Angeles had 18,066 units under construction, while nationally fewer than 480,000 units were underway [2][7].
Policy stayed local: Measure ULA transfer taxes, rent rules and FAIR Plan insurance rates up about 29% shaped underwriting more than new deliveries did [8].
Where We Are Now
Conventional apartments ended October at 93.0% occupancy, with effective rent up 1.6% year over year to $2,837 [9].
Demand beat supply in Q2: 2,837 units absorbed against 1,695 delivered, with 9,105 deliveries over the trailing 12 months [1].
The average cap rate rose a sixth straight quarter to 5.37%, at $308,551 per unit, still 13.9% below the 2022 peak [1].
Debt is the hurdle: agency 5-year money was 6.38% on Oct 26, SOFR was 3.95% on Oct 30 and the 30-year mortgage was 7.24% in the week of Oct 29 [6][5][10].
Operating costs are split: the 2026 assessment roll rose 4.42% to $2.27 trillion under Prop 13, while FAIR Plan rates are up about 29% [11][8].
Deals kept clearing: five sales or financings were reported, led by Truist's $152 million construction loan for Marina Shores in Long Beach [12][13][14][15][16].
Where We're Headed
The Fed held its target range at 3.75 to 4.00% on Oct 28 in a 10-2 vote; futures price about a 75% chance of a quarter-point hike on Dec 9 [17][18].
Inflation is still warm: September PCE ran 3.6% headline and 3.1% core, with July CPI at 3.4%, keeping cuts off the near-term table [19][20].
Forecasters still see tighter conditions: vacancy ending 2026 near 4.4% and rent up 1.7%, if absorption keeps outpacing deliveries[1].
California added 138,500 jobs from August 2025 to August 2026, up 0.77%; Los Angeles County added 35,300 over the year to June [21][22].
Global yields moved lower but stay elevated: the UK gilt was 4.9062% on Oct 29, Germany 3.31% on Nov 2, Japan 2.817% on Oct 30 and the ECB deposit rate 2.50% on Nov 2 [23][24][25][26].
What It Means for Los Angeles
Financing costs stay elevated. Los Angeles owners should underwrite refinances off the 10-year Treasury at 4.94% on Oct 30 per the U.S. Treasury, SOFR at 3.95% on Oct 30 and agency 5-year debt at 6.38% on Oct 26 [4][5][6].
Pricing gap remains wide. Los Angeles cap rates reached 5.37% in Q2, a sixth straight rise, at $308,551 per unit; the gap to 6.38% agency debt on Oct 26 is about 100 basis points, keeping leveraged buyers sidelined [1][6].
Fundamentals remain tight. Los Angeles conventional occupancy was 93.0% in October and effective rent rose 1.6% to $2,837; Q2 absorption of 2,837 units topped 1,695 deliveries, and forecasters see vacancy near 4.4% by year-end [9][1].
Deal flow favors construction capital. Los Angeles cleared five reported transactions, led by Truist's $152 million Marina Shores construction loan and a $132.7 million Culver City construction loan; the largest sale was 5550 Wilshire at $114 million [12][13][14].
California economy cushions Los Angeles. California added 138,500 jobs from August 2025 to August 2026, and Los Angeles County added 35,300 over the year to June; for Los Angeles owners, FAIR Plan costs, not Prop 13 taxes, are the pressure [21][22][8].
U.S. rates set Los Angeles floor. For Los Angeles, the Fed's 3.75 to 4.00% hold on Oct 28, futures pricing about a 75% chance of a Dec 9 hike and 3.6% September PCE argue against quick relief on borrowing costs [17][18][19].
Global yields reach Los Angeles loans. Los Angeles borrowing costs track more than the Fed: UK gilts were 4.9062% on Oct 29, Germany 3.31% on Nov 2, Japan 2.817% on Oct 30 and the ECB deposit rate 2.50% on Nov 2 [23][24][25][26].
Los Angeles Multifamily
Los Angeles conventional apartments held 93.0% occupancy in October, up 1.7% year over year, with effective rent up 1.6% to $2,837 [9]. Cap rates rose a sixth straight quarter to 5.37% in Q2, and price per unit sits 13.9% below the 2022 peak at $308,551 [1]. Absorption of 2,837 units topped Q2 deliveries, and forecasters see vacancy tightening to 4.4% by year-end [1].
The largest cities in the Los Angeles-Long Beach-Anaheim, CA metro. Rent and rent growth from Apartment List (Oct 2026); multifamily units permitted (buildings of 5+ units) from the Census Building Permits Survey. Permits lead construction by 12 to 24 months. Rows alphabetical; hover a row for detail.
MF units permitted, 2026 through Sep Census BPS [33]
2026 permit pace vs. 2025 annualized
Anaheim
$2,326
+1.6%
70
76
+45%
Brea
$2,651
+4.4%
0
391
New: 391 units vs none in 2025
Culver City
$2,968
+1.2%
0
95
New: 95 units vs none in 2025
Fullerton
$2,426
+3.1%
40
0
-100%
Laguna Niguel
$3,208
+7.2%
0
0
None in 2025 or 2026
Lake Forest
$3,322
+3.3%
0
0
None in 2025 or 2026
Los Angeles
$2,083
-0.6%
6,599
10,996
+122%
Palmdale
$1,924
+1.8%
7
293
+55x
Pasadena
$2,556
+1.4%
325
59
-76%
Pomona
$1,886
-1.8%
235
24
-86%
Santa Clarita
$2,447
-1.2%
0
128
New: 128 units vs none in 2025
West Hollywood
$2,187
+1.0%
117
78
-11%
Los Angeles Transactions and Deal Flow
Los Angeles deal flow tilted toward construction and balance-sheet capital in October: Truist's $152 million construction loan for Marina Shores in Long Beach led five reported transactions, followed by a $132.7 million Culver City construction loan, Decron Properties' $114 million Miracle Mile acquisition, a $95.8 million portfolio refinancing and a $6.8 million Westchester sale [12][13][14][15][16]. Lenders and local buyers stayed active while large core sales remained scarce.
Financing costs climbed into late October. Freddie Mac's 5-year fixed rate at 65% LTV quoted 6.23 to 6.38% on Oct 26, up roughly 30 to 50 basis points from late August [6]. The 10-year Treasury yield ended the month at 4.94% on Oct 30, down from 5.24% on Oct 1 [4][3]. SOFR held at 3.95% on Oct 30 [5]. Agency lending remains the workhorse, with a combined $176 billion purchase cap for 2026 and half of volume required to be mission-driven[34].
Agency Multifamily Rates, 2026 Trend
Indicative 5-year agency fixed rate at each dated quote. Hover the points.
Los Angeles County's 2026 assessment roll rose 4.42% to $2.27 trillion in net taxable value [11]. The county added 35,300 jobs over the year to June, up 0.8% [22], while metro population fell 0.5% to 12.84 million as of July 1, 2025 [27]. For owners, property taxes stay predictable under Prop 13; insurance is the cost pressure, with FAIR Plan rates up about 29% [8].
Los Angeles has the lowest vacancy of the Western markets
Sources: California FAIR Plan; LA County Assessor, Jul 14; Census Bureau; California EDD, Aug 16 [8][11][27][21][41]
National Rates and the Fed
The Fed held its target range at 3.75 to 4.00% on Oct 28 in a 10-2 vote, with two dissents favoring another hike [17]. The 10-year Treasury eased to 4.94% on Oct 30 from 5.24% on Oct 1 [4], and the 30-year mortgage slipped to 7.24% in the week of Oct 29 [42]. September PCE inflation ran 3.6% headline and 3.1% core [19]. Futures now price about a 75% chance of a quarter-point hike at the Dec 9 meeting [18].
Sources: U.S. Treasury and Freddie Mac, monthly averages through Oct 29, 2026; FRED for the 10-year before 2026 [4][10][44]
Global Backdrop
Global bond yields moved lower over the month. The U.S. 10-year Treasury yield was 4.94% on Oct 30 [4], with the UK gilt at 4.9062% on Oct 29 [23], Germany at 3.31% on Nov 2 [24] and Japan at 2.817% on Oct 30 [25]. The Federal Reserve held its target range at 3.75% to 4.00% on Oct 28 [17], and the ECB deposit rate stood at 2.50% on Nov 2 [26]. Lower global yields ease pressure on U.S. borrowing costs.
10-Year Government Bond Yields
Where the U.S. sits vs. peers. Hover a bar for context.
Sources: U.S. Treasury, Oct 30; Bank of England, Oct 29; Deutsche Bundesbank, Nov 2; Japan Ministry of Finance, Oct 30 [4][23][24][25]
Global Policy and Risk Snapshot
Central-bank posture and macro risks that feed into borrowing costs.
Disclosures. Compiled Nov 2, 2026 from publicly available sources; figures are as reported by each source on the date shown and have not been independently verified. Where sources conflict, the range is shown. Not investment advice.
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