CoStar's November 4, 2026 data show 7.8% vacancy and average asking rent of about $3,520 per unit in its Santa Monica multifamily submarket. Asking rents were down 1.1% year over year. For an owner considering a sale, the next question is how those conditions relate to the building's actual income and buyers' alternatives.
Key takeaways
- CoStar reports 7.8% vacancy and a 1.1% annual decline in asking rents as of November 4, 2026.
- CoStar: Its trailing-12-month report shows $238.3M of sales; transaction statistics and modeled market estimates are different measures.
- Sales help when their size, income, location and condition match the building being valued.
- The LAAA Team's 2727 3rd Street closing is a separate, documented 22-unit example.
What does the November 2026 Santa Monica apartment market show?
CoStar reports 7.8% vacancy, average asking rent of $3,520 per unit and a 1.1% year-over-year decline in asking rents in its November 4 quarter-to-date export. These describe CoStar's defined multifamily submarket, rather than every parcel with a Santa Monica mailing address. Source: CoStar DataExport, Geography APT-1-6885, All slice, 2026 Q4 QTD, exported November 4, 2026.
| Measure | Reported figure | Meaning |
|---|---|---|
| Inventory | 27,514 units | CoStar's defined submarket inventory |
| Vacancy | 7.8% | Submarket rate, not the subject building's vacancy |
| Average asking rent | $3,520 per unit monthly | Asking rent; not verified collections or an existing tenancy's lawful rent |
| Asking-rent growth | -1.1% year over year | Change in the market asking-rent series |
| Average effective rent | $3,357 per unit monthly | CoStar effective-rent series; distinct from asking rent |
| Under construction | 496 units | Pipeline, not delivered or leased inventory |
Source: the same CoStar November 4, 2026 quarter-to-date export. Dollar amounts are rounded to the nearest dollar and rates to one decimal. The quarter is still in progress. The separate report summary can differ slightly from the export's values; this table consistently uses the export.
For an owner, the first task is to reconcile the building's actual rent roll, collections, concessions, vacancies and required work with the relevant market evidence. A market asking rent is not permission to increase a controlled tenant's rent. The rent-control owners guide explains that separate review.
For a sale plan, these conditions call for realistic assumptions about lease-up time, concessions and achievable rents on vacant units. We compare the building's current income and expenses with buyers' financing requirements, then use relevant sales to test the asking price. The submarket figures help frame those questions; the property's records determine the valuation.
What do CoStar's completed-sale statistics measure?
CoStar's Santa Monica capital-markets report dated November 4, 2026 reports $238.3M in trailing-12-month sales volume, 59 transactions and 58 properties sold. Its overview lists 698 transacted units, a reported sale-price average of about $341,400 per unit and a reported transaction cap-rate average of 5.5%. Source: CoStar, Santa Monica Multi-Family Capital Markets Report, capital-markets overview, printed page 2 and submarket sales-trends table.
These are CoStar's reported transaction statistics, not the LAAA Team's sales or a verification of each transaction's financial assumptions. The cap-rate overview does not establish a comparable collected-income basis for every sale. Use its population and period before deciding how much weight to give the averages.
| Measure | Reported transaction statistic | Modeled market estimate |
|---|---|---|
| Cap rate | 5.5%, capital report's trailing-12-month overview | 4.8%, QTD export market-cap-rate series |
| Price per unit | About $341,400, capital report's trailing-12-month overview | $535,742, QTD export market-price series |
Sources: CoStar capital-markets report, November 4, 2026, printed page 2, for the transaction figures; CoStar DataExport, 2026 Q4 QTD, exported November 4, 2026, for the market estimates. The difference does not by itself establish that a building is underpriced, overvalued or available at either figure.
What do selected smaller-building sales show?
The references below are 18 reported sales of 3 to 10-unit buildings from April 2025 through September 2026, retained in our October 27 research snapshot. They are outside sales, not LAAA Team closings, and are not a complete list of Santa Monica transactions.
They help select comparables, rather than establish a citywide value range. A 3 or 4-unit sale and a 5 to 10-unit apartment sale can involve different buyers and financing; neither group should automatically anchor a 22-unit building's value.
Selected outside sales by building size
3 to 4-unit references
| Reported date | Property | Reported units | Price | Price/unit |
|---|---|---|---|---|
| 04/14/2025 | 2924 Exposition Blvd | 4 | $1,546,000 | $386,500 [1] |
| 07/29/2025 | 1256 Chelsea Ave | 4 | $1,630,000 | $407,500 [2] |
| 07/31/2025 | 2007 21st St | 4 | $2,100,000 | $525,000 [3] |
| 01/14/2026 | 2626 26th St | 4 | $1,275,000 | $318,750 [4] |
| 03/05/2026 | 2801 Virginia Ave | 3 | $1,600,000 | $533,333 [5] |
| 03/31/2026 | 2248 20th St | 4 | $1,945,000 | $486,250 [6] |
| 07/07/2026 | 3017 4th St | 4 | $2,340,000 | $585,000 [7] |
5 to 10-unit references
| Reported date | Property | Reported units | Price | Price/unit |
|---|---|---|---|---|
| 04/15/2026 | 1236 21st St | 5 | $2,805,000 | $561,000 [8] |
| 05/06/2026 | 2401 20th St | 5 | $1,500,000 | $300,000 [9] |
| 05/14/2026 | 1118 9th St | 10 | $2,801,500 | $280,150 [10] |
| 05/28/2026 | 210 California Ave | 10 | $4,999,500 | $499,950 [11] |
| 06/29/2026 | 1041 9th St | 10 | $3,900,000 | $390,000 [12] |
| 07/20/2026 | 921 16th St | 6 | $5,125,000 | $854,167 [13] |
| 07/22/2026 | 711 Grant St | 6 | $2,330,000 | $388,333 [14] |
| 08/27/2026 | 2807 Highland Ave | 6 | $3,250,000 | $541,667 [15] |
| 08/31/2026 | 947 7th St | 7 | $2,525,000 | $360,714 [16] |
| 09/18/2026 | 1127 5th St | 8 | $2,205,000 | $275,625 [17] |
| 09/22/2026 | 1423 25th St | 6 | $1,600,000 | $266,667 [18] |
Source: LAAA Team's selected outside-sale research snapshot, October 27, 2026, from MLS and property/recorded-sale research. Price per unit is reported price divided by the retained unit count, rounded to the nearest dollar. The 2007 21st Street reference is MLS-reported closed; recording was not confirmed in the saved review. The 1127 5th Street price/date is from County Assessor recorded-sale history.
How should an owner use cap rates?
A cap rate is useful when the income and expenses behind it are understood. We compare in-place income and a buyer's likely operating costs, including reassessed property taxes, with relevant sale evidence.
An advertised cap rate can use different vacancy, rent or expense assumptions from another sale. We normalize those assumptions before deciding which comparisons deserve weight. The purpose is a supportable valuation, rather than applying one market average to every building.
How should an owner compare two buildings?
- Date: compare the market and financing context at each sale, rather than treating an older price as current.
- Location: consider the block and neighborhood, access and the building's setting.
- Physical property: match unit mix, size, condition, parking and required work.
- Tenancy: review lawful rents, move-in dates, vacancies and concessions.
- Income basis: separate collections from schedules and model assumptions; distinguish historical taxes from a buyer's tax-reset model.
- Transaction scope: identify the interest and property sold, the confirmed milestones and unusual terms that affect comparability.
Equal unit counts do not establish equal value. Nor does a price difference between sales in different years establish appreciation, a rent-control discount or one broker's outperformance.
What does the LAAA Team’s Santa Monica experience add?
Our Santa Monica closing record includes 23 sale events from 2016 through October 30, 2026: 19 apartment-building sales, one mixed-use sale and three development-related sales. The apartment and mixed-use transactions represent 159 apartments, plus four office suites. Repeat sales count as separate transactions, rather than distinct buildings; the development-related events are separate from that apartment total.
The mixed-use sale at 1540 7th Street comprised four apartments and four office suites. Those commercial spaces are not additional apartments. Experience with different building types and income profiles helps us select useful comparisons and anticipate buyers' questions.
At 2727 3rd Street, 22 apartments sold for $7,200,000 on October 30, 2026, or $327,273 per unit and $423 per square foot, with a 5.56% cap rate and an 11.40 GRM. The seller accepted an offer 15 days after the marketing launch. We received 5 offers in total.
The sale came to $423 per square foot, with a 5.56% cap rate and an 11.40 GRM.
What else affects the owner's net?
The value of the building and the cash an owner keeps are different calculations. Santa Monica's transfer tax, contract allocation, commissions, payoff and prepayment costs, prorations and other transaction items matter. The Measure GS guide works fully taxable examples and explains their limits.
The selling guide covers preparation and timing, and the rent-control owners guide explains the income and tenancy records to review.
Frequently Asked Questions
What price per unit should I expect for my building?
CoStar's reported transaction average is about $341,400 per unit for its stated trailing-12-month period. Your building can differ substantially. We select sales with comparable size, unit mix, location, condition and income, then explain the price range they support.
What cap rate should I use?
CoStar reports a 5.5% transaction average and a separate modeled market rate of about 4.8%. Neither is automatically the right rate for your property. We compare equivalent income and expense assumptions against relevant transactions before recommending a value range.
Are these all recent Santa Monica transactions?
No. The table is a selected October 27 snapshot of smaller-building references spanning April 2025 to September 2026. It is separate from CoStar's broader November report and our own closing record.
How can I get a comparison that fits my building?
Share a current rent roll and recent income and expense information. We can identify relevant sales, review the building's income and condition, and explain pricing choices and likely net.
Want a comparison built around your property?
We can select relevant sales, review your income and tenancy records, and explain the choices that matter to your valuation and likely net.
Get a Santa Monica Building Valuation
Sources
CoStar sources: Santa Monica Multi-Family Submarket Report and Multi-Family Capital Markets Report, November 4, 2026; Santa Monica DataExport, 2026 Q4 quarter-to-date. These licensed reports provide the attributed rental, reported-transaction and modeled series above; their populations differ.
Outside-sale source notes
These are selected outside sales. Dates retain their reported MLS or recorded-sale basis; a third-party latest-sale date can differ. Sources identify the retained snapshot and parcel, rather than certify every legal or operating detail. County parcel links identify the property; some reported prices come from MLS or retained sale research.
- 2924 Exposition Blvd: MLS 25492131; retained sale research, October 27 snapshot. Assessor parcel 4268-022-005.
- 1256 Chelsea Ave: retained sale research, October 27 snapshot. Assessor parcel 4276-017-055.
- 2007 21st St: MLS 25532129; retained sale research, October 27 snapshot. MLS-reported closed; recording was not confirmed in the retained review. Assessor parcel 4274-025-002.
- 2626 26th St: retained sale research, October 27 snapshot. Assessor parcel 4270-011-049.
- 2801 Virginia Ave: MLS SR26016434MR; retained sale research, October 27 snapshot. Assessor parcel 4268-020-036.
- 2248 20th St: MLS 25587495; retained sale research, October 27 snapshot. Assessor parcel 4273-002-016.
- 3017 4th St: MLS SB26062407MR; retained sale research, October 27 snapshot. Assessor parcel 4287-027-003.
- 1236 21st St: retained sale research, October 27 snapshot. Assessor parcel 4276-014-008.
- 2401 20th St: retained sale research, October 27 snapshot. Assessor parcel 4273-018-012.
- 1118 9th St: MLS 25578645; retained sale research, October 27 snapshot. Assessor parcel 4281-035-004.
- 210 California Ave: MLS COMP26151817; retained sale research, October 27 snapshot. The Assessor reports 10 units; the November CoStar export reports 11. The table uses the Assessor denominator: $499,950 per unit. An 11-unit denominator would give $454,500 per unit. Assessor parcel 4292-021-020.
- 1041 9th St: MLS SR26048580MR; retained sale research, October 27 snapshot. Assessor parcel 4281-029-015.
- 921 16th St: MLS 26666473; retained sale research, October 27 snapshot. Assessor parcel 4281-002-021.
- 711 Grant St: MLS 26686007; retained sale research, October 27 snapshot. Assessor parcel 4289-002-014.
- 2807 Highland Ave: MLS COMP26153785; retained sale research, October 27 snapshot. Assessor parcel 4287-018-003.
- 947 7th St: MLS 26834679; retained sale research, October 27 snapshot. Assessor parcel 4292-002-014.
- 1127 5th St: County Assessor recorded-sale history, retained October 27. Assessor parcel 4292-012-018.
- 1423 25th St: retained sale research, October 27 snapshot. Assessor parcel 4275-001-020.
- LAAA Team retained outside-sale research, October 27, 2026 snapshot and accepted source/unit-count corrections. This is a selected reference set from MLS and property/recorded-sale research, with qualifications shown above.
- Published LAAA Team Santa Monica closing record, with apartment and development events separated for comparison, and closing records for 2727 3rd Street.
- CoStar, Santa Monica Multi-Family Submarket Report and Multi-Family Capital Markets Report, dated November 4, 2026; DataExport, Santa Monica APT-1-6885, All slice, 2026 Q4 QTD, exported November 4, 2026. The current quarter is incomplete; quarter-end estimates and later forecasts are excluded.
About the property data
The four property exports were combined and deduplicated for building-level research. They include different building statuses and incomplete rent and vacancy fields. They supplement property research; the defined CoStar submarket series above supplies the market statistics.