Los Angeles Multifamily Market
Report

Emerging and existing demand drivers offset hurdles. After two years of moderate vacancy compression, Los Angeles’ rental market will face several hurdles in 2026 that could potentially alter the trajectory of local demand. Home to the nation’s fourth-largest immigrant population — more than 4 million people as of 2023 — the market will continue to be acutely impacted by stricter immigration policies, which reduced the number of individuals arriving in the U.S. last year. The ongoing decline in local film- and entertainment-related jobs also stands to affect the size of the metro’s renter pool. Over the past three years, the count of Los Angelenos employed in the motion picture industry declined by at least 40,000. Fortunately, the market will face limited supply pressure in 2026, as approximately 6,200 units are slated for delivery — the lowest total since 2015. This, along with the metro’s longstanding barriers to homeownership, will counteract the effects of the aforementioned headwinds on the renter pool, keeping the metro in a low vacancy state over the near term.