Van Nuys Multifamily Market Report

Key Highlights to Know About Van Nuys Multifamily

• Rents are 20% below the Greater LA average, with a 1.1% annual increase outpacing the market-wide 0.8% gain. Average rents $1,791/month.
• The submarket expanded its inventory by 5%, with 924 units under construction, including a 208-unit projects at 6569-6581 N Van Nuys Blvd, the largest delivery since 2016.
• Sales totaled $72.1 million in 2024, with Q4 sales recording $41.2 million. These are both below historical averages, but improvement is anticipated in 2025.

Construction

With approximately 1,700 net new units added over the past decade, apartment inventory has expanded about 7%. This growth lags behind the Greater Los Angeles market wide expansion of around 10% during the same period. The largest current development includes a 208-unit project at 6569-6581 N Van Nuys Blvd., is anticipated to deliver soon and is the largest addition to the submarket since 2016. Once completed, this development and other smaller projects in the pipeline will increase the area’s inventory by 1.3%. Although Van Nuys’ construction pace is slower than the broader L.A. metro, it has outpaced other San Fernando Valley submarkets on a percentage basis, except for Woodland Hills, North Hollywood, and Studio City.

Vacancy & Rent

Van Nuys has maintained a relatively low vacancy rate of 3.3%, slightly improved from 3.5% a year ago. Rents have grown by 0.9% over the past year, with the average asking rent at $1,830/month, about 20% below the Greater Los Angeles average. Class C properties, which dominate the submarket, have a vacancy rate of 2.6%, significantly below the market-wide average of 4.2%. However, the upcoming completion of the 208-unit Class A project is expected to increase vacancy, particularly in the Class A segment. Despite these shifts, Van Nuys remains a relatively affordable and tight rental market, appealing to budget-conscious renters.

Sales

Transaction volume has been modest over the past year, with $72.1 million in properties trading hands, including $41.2 million in sales during the fourth quarter. Higher interest rates have dampened asset pricing, with average unit prices falling over 15% since their early 2022 peak to $186,000/unit. Recent notable transactions include a 30-unit property at 3606 Cedros Ave., purchased for $7.11 million at a 3.6% in-place cap rates, and Casa Madrid Apartments, a 25-unit property acquired for $4.8 million at a 5.3% cap rate. The market has seen an increase in cap rates, up over 100 basis points. Despite these challenges, buyer interest remains in value-driven opportunities within the submarket.