Los Angeles County & Orange County
Investing in 5–30 Unit Apartment Properties in Los Angeles & Orange County (2025)
The Southern California small and mid-sized apartment sector is showing signs of renewed momentum in 2025—even as the market adjusts to higher borrowing costs and shifting renter demand. Below you’ll find key insights and the latest stats for buyers exploring 5–30 unit assets in Los Angeles or Orange Counties before starting their search.
Los Angeles County
The 5–30 unit apartment market in LA remains resilient, offering a mix of value-add and stabilized investments in both urban cores and emerging neighborhoods. As of mid-2025, record-high average asking rents (around $2,275 per unit) are helping offset challenges from rising vacancies (4.7%–5.5%) and higher cap rates, which now average 5.5%–6% for this segment. Median price per unit for properties in this size range has declined slightly in central LA to around $218,000–$270,000 as buyers adjust their yield requirements upward. Transaction activity is rebounding after a slow 2024, with more deals being negotiated at prices allowing for current cash flow rather than pure appreciation plays. Neighborhoods such as Koreatown, the Westside, and the San Fernando Valley see the most consistent rental demand, while value-add opportunities exist in gentrifying Eastside and South Los Angeles areas.
Orange County
Orange County’s 5–30 unit apartment market remains a favorite for investors seeking long-term stability, low turnover, and strong tenant profiles. Cap rates here trend slightly lower—4.2%–5%—as high-income renter demand supports steady occupancy, with vacancies in the low 3%–4% range. Per-unit prices for well-located properties generally fall between $290,000 and $340,000, though coastal assets can command more. Rent growth is more modest than in past cycles (about 2%–3% annually), but the region continues to benefit from geographic constraints and a robust local job market. Santa Ana, Anaheim, and Costa Mesa offer the best blend of rent growth potential and accessible price points, while premier cities like Huntington Beach and Irvine are prized for their rock-solid fundamentals but see the lowest cap rates.
LA vs. OC: 5–30 Unit Snapshot
What Investors Should Know
In Los Angeles, higher cap rates and softening prices create more favorable entry points for long-term buyers willing to do renovations or management upgrades. LA neighborhoods offer diversity in return profiles and tenant demographics.
In Orange County, investor focus is on stability, low vacancy, and long-term appreciation—even as rent growth moderates. Entry prices are higher, but risk is lower, and tenant quality remains top-tier.
Across SoCal, recent cap rate increases signal better cash flow potential and stronger negotiating leverage for buyers in a previously overheated market.
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