West Hollywood Multifamily Real Estate Market Overview
West Hollywood (WeHo) is one of the most vibrant, walkable, and sought-after neighborhoods for multifamily investors on the Westside of Los Angeles. The area features a dynamic mix of high-end dining, rooftop bars, luxury shopping in the Design District, and world-famous entertainment venues such as the Whisky a Go Go, The Roxy, and The Viper Room.
West Hollywood’s vibrant LGBTQ+ community, walkability, and 24/7 energy make it highly attractive to young professionals, creatives, and affluent renters. This results in strong occupancy rates and premium rental values across multifamily properties. Its prime central location offers convenient access to Beverly Hills, Hollywood, Downtown LA, and all major freeways.
For investors, West Hollywood stands out as a resilient and high-performing multifamily market, driven by limited housing supply, strong tenant demand, and its reputation as a premier lifestyle destination in Los Angeles.
2025 West Hollywood Multifamily Market Statistics at a Glance
West Hollywood Annual Multifamily Apartment Building Sales Statistics*
Buildings Sold: 29
Avg. Sale Price : $4,222,778
Avg. Price/ Unit: $402,831
Avg. Months to Sale: 3.4 mos
Avg. Price/SF: $420
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It is imperative to understand how rent control and Measure ULA exposure will impact the value of your West Hollywood apartment building
West Hollywood Multifamily Market Overview 2026
West Hollywood is an independent city known for its high density, strong renter demand, walkable lifestyle (Sunset Strip, Santa Monica Boulevard, Melrose), and limited multifamily inventory. Cap rates in the area typically range from approximately 4.0% to 5.0% (sometimes extending to 5.5% depending on asset quality), reflecting the premium location and consistent buyer competition. Price per unit commonly falls in the $350,000 to $550,000+ range, depending on building quality, unit mix, condition, and exact location within the city.
The typical apartment building is a smaller 4- to 20-unit property, often courtyard-style, bungalow-court, or low-rise, with a large portion of the inventory consisting of pre-1979 construction. Buyer demand comes from high-net-worth individuals, 1031 exchange buyers, private investors, and long-term holders seeking stable, desirable Westside assets with strong demographics and limited new supply.
West Hollywood Rent Control and Measure ULA
West Hollywood has its own Rent Stabilization Ordinance (separate from the City of Los Angeles RSO). Most multi-unit buildings with certificates of occupancy issued before July 1, 1979 are covered. The Annual General Adjustment is set at 75% of the applicable CPI change, with a permanent maximum of 3%. For the period beginning September 1, 2026, the allowable increase is 2.75%.
Buildings not covered by the local ordinance 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 not apply in West Hollywood. As an independent municipality, the City of Los Angeles transfer tax surcharges (4% and 5.5%) have no legal force here. This is a meaningful advantage for sellers of higher-value buildings compared with properties located inside the City of Los Angeles.
How to Sell a Hollywood Apartment Building
West Hollywood benefits from limited supply, strong lifestyle-driven buyer demand, and the absence of Measure ULA. However, its strict local rent stabilization rules significantly impact cash flow growth and buyer underwriting for covered buildings. Sellers of long-held properties must also navigate low tax basis, depreciation recapture, and potential 1031 exchange planning.
An experienced multifamily broker who understands West Hollywood’s local rent stabilization rules, the premium Westside buyer pool, and how to position the asset for maximum value can help you evaluate pricing and the optimal path to maximize your net proceeds.
West Hollywood Multifamily Market Statistics
Average Rent vs Vacancy Rate- Historical & Estimated
2025 Q3: West Hollywood, California Multifamily Average Rent: $3,094 Average Vacancy Rate: 5.7%Average GRM and Cap Rate- Historical
2025: West Hollywood, California Multifamily Average GRM: 12.8, Average Cap Rate 5.2%Number of Multifamily Buildings Sold- Historical
2025: West Hollywood, California Multifamily Buildings Sold: 29Average Price/Unit and Price/SF- Historical
2025: West Hollywood, California Multifamily Average Price/Unit Sold: $402,831, Price/SF Sold: $420Historical and estimated market statistics for the West Hollywood, California multifamily apartment building submarket. The graphs above show the average Price/Unit, Price/SF, GRM, Cap Rate, Average Marker Asking Rent and Vacancy for West Hollywood 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. Frequently Asked Questions: West Hollywood Apartment Buildings
What is the typical cap rate and price per unit in West Hollywood?
Cap rates in West Hollywood generally range from approximately 4.0% to 5.0%. Price per unit commonly falls between $350,000 and $550,000+, depending on building condition, unit mix, location, and quality.
Is West Hollywood under rent control?
Yes. West Hollywood has its own Rent Stabilization Ordinance. Most multi-unit buildings with certificates of occupancy issued before July 1, 1979 are covered. The allowable Annual General Adjustment beginning September 1, 2026 is 2.75% (75% of CPI, with a permanent maximum of 3%). Some buildings may instead fall under AB 1482.
Does Measure ULA apply to apartment sales in West Hollywood?
No. Measure ULA is a City of Los Angeles ordinance and does not apply to properties in West Hollywood.
How do I sell an apartment building in West Hollywood?
Work with a broker who understands West Hollywood’s local rent stabilization rules, the absence of Measure ULA, the premium Westside/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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