Encino Multifamily Real Estate Market Overview
Encino is a prestigious, leafy, and upscale neighborhood in the southern San Fernando Valley, highly regarded by multifamily investors for its suburban charm, strong tenant demand, and long-term stability.
Roughly bounded by Victory Boulevard to the north, Mulholland Drive and the Santa Monica Mountains to the south, the I-405 Freeway to the east, and Lindley Avenue to the west, Encino is anchored by Ventura Boulevard, its vibrant main commercial corridor lined with upscale restaurants, boutique shops, and local services. The neighborhood borders Tarzana to the west, Sherman Oaks to the east, and offers convenient access to Brentwood over the hill.
For apartment building owners and investors, Encino provides a stable and resilient multifamily market. The combination of desirable location, quality tenant base, limited new supply, and strong demand supports consistent rental performance, solid occupancy rates, and attractive long-term appreciation in one of the San Fernando Valley’s most sought-after enclaves.
2025 Encino Multifamily Market Statistics at a Glance
Encino Annual Multifamily Apartment Building Sales Statistics*
Buildings Sold: 4
Avg. Sale Price: $15,033,875
Avg. Price/Unit: $308,387
Avg. Price/SF: $300
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It is imperative to understand how rent control and Measure ULA exposure will impact the value of your Encino apartment building
Encino Multifamily Market Overview 2026
Encino is a desirable San Fernando Valley neighborhood within the City of Los Angeles, known for its strong renter demand, limited new supply of institutional-scale product, high occupancy (often exceeding 97%), and proximity to Ventura Boulevard, major freeways (101, 405), and employment centers across the Westside, Warner Center, and beyond. Cap rates in the area typically range from approximately 4.5% to 5.5% (with San Fernando Valley averages often near the higher end of that band or slightly above for mid-tier assets), reflecting solid fundamentals and buyer competition for quality locations. Price per unit commonly falls in the $225,000 to $375,000+ range for typical buildings, with newer or core-plus assets (such as the recent 52-unit Park Encino sale) achieving significantly higher figures around $500,000+ per unit depending on building quality, unit mix, condition, and amenities.
The typical apartment building is a smaller-to-midsize 4- to 50-unit property, often garden- or courtyard-style low-rise, with a substantial portion of the older inventory subject to the City of Los Angeles Rent Stabilization Ordinance (RSO). Buyer demand comes from high-net-worth individuals, 1031 exchange buyers, private investors, and long-term holders seeking stable assets in an affluent submarket with strong demographics and limited new deliveries of larger projects.
Encino Rent Control and Measure ULA
As part of the City of Los Angeles, Encino properties are subject to the Los Angeles Rent Stabilization Ordinance (RSO). Most multi-unit buildings with certificates of occupancy dated before October 1, 1978 are covered. The allowable RSO rent increase for the period July 1, 2026 through June 30, 2027 is 3% (under the updated formula of 90% of CPI with a 1% floor and 4% ceiling; utility and dependent adders have been eliminated).
Buildings not covered by the RSO may still fall under AB 1482 statewide protections (generally 5% + CPI, currently 8.7% for the Los Angeles area for increases effective August 1, 2026–July 31, 2027). Measure ULA does apply in Encino. As a City of Los Angeles neighborhood, sales of qualifying properties (generally $5 million and above) are subject to the Measure ULA transfer tax surcharges (4% on $5M–$10M sales; 5.5% on $10M+).
How to Sell a Encino Apartment Building
Encino benefits from strong buyer demand, high occupancy, and limited new institutional-scale supply. However, RSO restrictions significantly impact cash flow growth and buyer underwriting for older buildings, and Measure ULA can affect net proceeds on higher-priced sales. Sellers of long-held properties must also navigate low tax basis, depreciation recapture, and potential 1031 exchange planning.
An experienced Encino multifamily listing broker who understands Encino’s position within the broader San Fernando Valley market, Los Angeles RSO rules, Measure ULA implications, and the local buyer pool can help you evaluate pricing and the optimal path to maximize your net proceeds.
Encino Multifamily Statistics
Average Rent vs Vacancy Rate- Historical & Estimated
2025 Q3: Encino, California Multifamily Average Rent: $2,356 Average Vacancy Rate: 3.2%Average GRM and Cap Rate- Historical
2025: Encino, California multifamily apartments sold average GRM: 10.6, Cap Rate 5.5%Number of Multifamily Buildings Sold- Historical
2025: Encino, California Multifamily Buildings Sold: 4Average Price/Unit and Price/SF- Historical
2025: Encino, California multifamily properties average Price/Unit Sold: $308,387 Price/SF Sold: $300Historical and estimated market statistics for the Encino, California multifamily apartment building submarket. The graphs above show the average Price/Unit, Price/SF, GRM, Cap Rate, Average Asking Market Rent and Vacancy for Encino apartment buildings for the years 2020-2025. *All data has been obtained from CoStar. Jake Plewa, the Taksa Investment Group and ReMax Commercial cannot guarantee the accuracy of the data above. The graphs and statistics are for information purposes only. Frequently Asked Questions: Encino Apartment Buildings
What is the typical cap rate and price per unit in Encino?
Cap rates in Encino and the surrounding San Fernando Valley generally range from approximately 4.5% to 5.5%. Price per unit commonly falls between $225,000 and $375,000+ for typical assets, with newer, renovated, or core-plus properties commanding higher pricing (recent examples have exceeded $500,000 per unit).
Is Encino under rent control?
Yes. As part of the City of Los Angeles, most multi-unit buildings built before October 1, 1978 are covered by the Los Angeles Rent Stabilization Ordinance (RSO). The allowable increase for July 1, 2026–June 30, 2027 is 3%. Some buildings may instead fall under AB 1482.
Does Measure ULA apply to apartment sales in Encino?
Yes. Measure ULA is a City of Los Angeles ordinance and applies to qualifying property sales in Encino (and other LA City neighborhoods).
How do I sell an apartment building in Encino?
Work with a Encino multifamily listing broker who understands Encino’s strong submarket fundamentals, the Los Angeles RSO system, Measure ULA transfer tax implications, the local and 1031 buyer pool, and how to accurately present both in-place income and long-term upside. Precise pricing and clear communication of the regulatory framework are especially important in this market.
Disclaimer The information on this page is provided for general informational purposes only and does not constitute legal, financial, tax, or investment advice. Jake Plewa, the Taksa Investment Group, and RE/MAX Commercial make no representations or warranties regarding the accuracy, completeness, or reliability of any data, statistics, graphs, or market information presented. Market conditions change, and past performance is not indicative of future results. You should independently verify all information and conduct your own thorough due diligence, including consulting qualified professionals, before making any decisions related to the sale or purchase of an apartment building.
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