If you own multifamily property in Southern California, you’ve likely been asking:

• “How much is my property worth right now?”
• “Are cap rates rising? Is now a smart time to sell or hold?”
• “Should I refinance, list, or just wait?”

The market is evolving—and so is value. Rent growth, occupancy, buyer activity, and cap rates are moving differently in each submarket. And for serious investors, local data—not headlines—is what should guide next steps.

This report highlights rent trends, cap rates, and valuation patterns in Los Angeles, Ventura, and Riverside Counties to help owners make informed decisions.

LOS ANGELES COUNTY

Pricing Pressure in Mid-Market Assets, Select Resilience in Core Areas

• Vacancy: 5.2%, trending slightly higher.
• Rent Growth: Just 0.6–0.7% YoY, trailing inflation.
• Cap Rates: Currently averaging 4.85%–5.35%, representing a 40–50 bps increase from early 2023.
• Value Trend: Values have softened approximately 7–12% for stabilized B/C assets; well-located Class A properties are holding steadier.

Pricing remains compressed in many LA submarkets. Buyers are more selective, underwriting with stricter rent growth assumptions. Cap rate expansion has made it harder for owners to achieve 2022-level pricing unless there’s a clear story of value-add or location strength.

VENTURA COUNTY

Rent Growth Offsets Cap Rate Expansion in Supply-Constrained Market

• Rent Growth: +9.9% YoY, +3.7% QoQ
• Vacancy: Remains low—sub-4% in most cities.
• Cap Rates: On average, cap rates range from 4.65% to 5.10%, depending on location and unit mix.
• Value Trend: Pricing has remained stable, with modest 2–5% increases in select submarkets due to rent growth outpacing cap rate movement.

Ventura is one of the few Southern California counties where effective value per unit is holding or rising. Lack of new development and renter migration from coastal cities are keeping investor interest high, even as cap rates have widened modestly.

RIVERSIDE COUNTY (INLAND EMPIRE)

Cap Rates Expanding Faster Than Rent Growth Can Offset

• Rent Growth: Slowed from high single-digit YoY gains in 2023 to ~2–3% YoY in Q2 2025.
• Vacancy: Averaging 5.1–5.5%, with pockets higher in older, lower-rent product.
• Cap Rates: Now averaging 5.35%–5.85%, depending on location, asset class, and vintage.
• Value Trend: Values have declined 8–14% since peak pricing, with greatest softness in C-class or underperforming assets.

Cap rate movement has outpaced income growth in much of the Inland Empire. Investors are factoring in more risk related to tenant base, economic sensitivity, and rent collection stability. Value remains attainable, but uncovering the right price needs extra effort.

REGIONAL CONTEXT: CAP RATES & VALUE SNAPSHOT

In Q2 2025, Los Angeles County cap rates averaged between 4.85% and 5.35%, an increase of roughly 40–50 basis points since 2022, with values down about 7% to 12% from peak levels. Ventura County’s cap rates ranged from 4.65% to 5.10%, up 30–40 basis points over the same period, while select submarkets have actually seen 2% to 5% value growth thanks to rent growth outpacing valuation drag. Riverside County, including the Inland Empire, posted the highest cap rates—5.35% to 5.85%—reflecting an increase of 60–70 basis points since 2022, with property values declining roughly 8% to 14% from their peak.

Cap rates across Southern California have generally expanded between 30 and 70 basis points over the past 12–18 months, driven by rising interest rates, conservative underwriting, and tighter capital availability. However, not all properties are being affected equally.

• Assets in supply-constrained submarkets like Ventura are seeing rent growth offset valuation drag.
• Mid-tier and older properties in inland or tertiary areas are facing more pronounced valuation declines.

What This Means for You

If you’re holding multifamily in LA, Ventura, or Riverside, this environment calls for clarity—not guesswork.

• Do your rents justify today’s cap rates?
• Are you sitting on equity that could be redeployed tax-deferred?
• How does your valuation compare to recent sales, not just broker opinions?

A data-driven, no-fluff Broker’s Opinion of Value (BOV) can provide the insight needed to decide whether to sell, hold, refinance, or reposition.

Lucrum: Helping You Navigate With Truth, Not Hype

We don’t just run comps—we help owners make informed decisions based on real operating data, honest assumptions, and investor sentiment. As your trusted guide, we bring:

• Integrity – Truthful valuations, not inflated promises.
• Excellence – Every BOV includes rent analysis, cap rate comps, and investment logic.
• Results – We help clients decide whether to sell, hold, or reposition—based on facts.
• Peace of Mind – Market shifts are less stressful when you’re informed.
• Commitment to Success – Your long-term outcome, not a short-term sale, is our priority.

Want to Know Where Your Property Stands Today?

Let’s take the guesswork out of the equation. If you’re unsure whether now is the time to sell, refinance, or explore a 1031 exchange:

Email us at info@www.lucrumre.com
Or call/text 866.582.7865

We’ll prepare a confidential, data-backed opinion of value tailored to your property and today’s investor expectations.

Don’t Let Cap Rate Shifts or Market Noise Catch You Off Guard.

Get clarity. Make confident decisions. Lucrum can help.