San Gabriel Valley, CA Multifamily Market Report | Lee & Associates | Q4 2025

Market Overview

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San Gabriel Valley's multifamily market posted negative net absorption of 92 units in Q4 2025, and vacancy climbed to 5.0% from 4.0% a year prior, reflecting softening near-term demand. Rising ownership costs, including more stringent rent control, higher insurance premiums, and increased utility expenses, have pushed acquisition cap rates above 6% in parts of the submarket. At the same time, the structural housing shortage remains acute, transaction volume stayed active, and the construction pipeline contracted to 1,331 units from 1,879 a year ago. Asking rents held near $2,038 per unit. The report's authors note the combination of constrained supply and available capital as a long-term buying opportunity.

‍About Lee Associates

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Lee Associates is a nationwide commercial real estate brokerage serving investors, owners, and occupiers across property types. Their LA San Gabriel Valley Q4 2025 multifamily market report tracks absorption, vacancy, asking rents, and capital markets activity to help investors and owners assess market conditions. To read the full report, click here.