Santa Barbara, CA Multifamily Market Report | Lee & Associates | Q4 2025

Market Overview

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Santa Barbara's multifamily market held tight in Q4 2025, with vacancy at 3.84% and asking rents averaging $2,531 per unit. Trailing 12-month absorption turned slightly negative at 38 units as the year's modest deliveries temporarily outpaced demand, but the broader supply picture remains highly constrained. Despite 541 units in the pipeline, few are scheduled for near-term delivery, and the market has averaged roughly 140 annual deliveries over the past decade. Rent growth moderated to 0.5% year-over-year, though cumulative five-year gains remain strong. Cap rates edged up to 4.82% and sale pricing averaged $342,615 per unit. Minimal new supply and modest population growth are expected to keep vacancy stable through 2026.

‍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 Santa Barbara 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.