Santa Monica, California is one of the most prestigious and desirable coastal markets for multifamily investment on the Westside of Los Angeles. Renowned for its pristine beaches, upscale lifestyle, and strong rental demand, Santa Monica consistently appeals to affluent tenants and delivers resilient long-term value for apartment building owners and investors.
Santa Monica is home to iconic landmarks including the historic Santa Monica Pier, Santa Monica State Beach, and the popular Third Street Promenade. The neighborhood offers residents an unmatched coastal lifestyle with bike paths, oceanfront parks, and year-round community events. Its prime location provides excellent access to Beverly Hills, Culver City, Venice, LAX, and all major freeways.
For multifamily investors, Santa Monica stands out due to its limited housing supply, strong demand from high-income professionals and executives, and consistent appreciation. The combination of beach proximity, walkability, and urban amenities makes it one of the most stable and high-performing apartment markets on the Westside.
Santa Monica Multifamily Real Estate Market Overview
2025 Santa Monica Multifamily Market Statistics at a Glance
Santa Monica Annual Multifamily Apartment Building Sales Statistics*
Buildings Sold
68
Average Sale Price
$3,230,941
Average Price Per Unit
$392,012
Average Months to Sale
5.8 Months
Average Price Per SF
$430
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It is imperative to understand how rent control and Measure ULA exposure will impact the value of your Santa Monica apartment building
Santa Monica Multifamily Market Overview 2026
Santa Monica is an independent coastal city known for its strong renter demand, limited supply, and highly regulated multifamily market. Cap rates in the area typically range from approximately 4.5% to 5.5%, reflecting the premium Westside location. Price per unit commonly falls in the $350,000 to $600,000+ range, depending on building quality, unit mix, and proximity to the ocean or downtown.
The typical apartment building is a smaller 4- to 20-unit property, often courtyard-style or low-rise, with a large portion of the inventory subject to strict local rent control. Buyer demand comes from high-net-worth individuals, 1031 exchange buyers, and long-term investors seeking irreplaceable coastal assets.
Santa Monica Rent Control and Measure ULA
Santa Monica has one of the strongest rent control systems in California, administered by the independently elected Rent Control Board. Most multi-unit buildings constructed before April 10, 1979 are covered. The 2026 General Adjustment is 2.6%, with a maximum dollar increase of $70 for higher-rent units (effective September 1, 2026).
Buildings not covered by Santa Monica rent control may still fall under AB 1482 statewide protections. Measure ULA does not apply in Santa Monica. As an independent city, it is not subject to the City of Los Angeles transfer tax surcharges.
How to Sell a Santa Monica Apartment Building
Santa Monica benefits from limited supply, strong buyer demand, and the absence of Measure ULA. However, its strict rent control system significantly impacts cash flow growth and buyer underwriting. Sellers of long-held properties must also navigate low tax basis, depreciation recapture, and potential 1031 exchange planning.
An experienced Santa Monica multifamily listing broker who understands Santa Monica’s unique rent control rules and the coastal buyer pool can help you evaluate pricing and the optimal path to maximize your net proceeds.
Santa Monica Multifamily Statistics
2025 Q3: Santa Monica, California Multifamily Average Rent: $3,6,56 Average Vacancy Rate: 10.5%Average Rent vs Vacancy Rate- Historical & Estimated
2025: Santa Monica, California Average GRM: 13.0 , Cap Rate 5.5%Average GRM and Cap Rate- Historical
2025: Santa Monica, California Multifamily Buildings Sold: 50Historical and estimated market statistics for the Santa Monica, California multifamily apartment building submarket. The graphs above show the average Price/Unit, Price/SF, GRM, Cap Rate, Rent and Vacancy for Santa Monica multifamily 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. Number of Multifamily Buildings Sold- Historical
2025: Santa Monica, California Multifamily Average Price/Unit Sold: $392,012 Price/SF Sold: $430Average Price/Unit and Price/SF- Historical
Frequently Asked Questions: Santa Monica Apartment Buildings
What is the typical cap rate and price per unit in Santa Monica?
Cap rates in Santa Monica generally range from approximately 4.5% to 5.5%. Price per unit commonly falls between $350,000 and $600,000+, depending on building condition, unit mix, location, and quality.
Is Santa Monica under rent control?
Yes. Santa Monica has its own strict Rent Control law. Most multi-unit buildings built before April 10, 1979 are covered. The 2026 General Adjustment is 2.6% (with a $70 maximum increase for higher-rent units). Some buildings may instead fall under AB 1482.
Does Measure ULA apply to apartment sales in Santa Monica?
No. Measure ULA is a City of Los Angeles ordinance and does not apply to properties in Santa Monica.
How do I sell an apartment building in Santa Monica?
Work with a Santa Monica apartment listing broker who understands Santa Monica’s rent control system, the premium coastal 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.
Best Santa Monica Multifamily Apartment Broker
We are a full-service real estate brokerage specializing in Los Angeles apartment building sales and multifamily transactions. With a powerful nationwide network of lenders, brokers, and industry professionals, we deliver exceptional results for apartment building owners and investors both locally in Santa Monica and the Greater Los Angeles area.
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