Market
Commentary

The LA Multifamily Cap Rate Has Finally Moved. Here Is What It Actually Means.

After three years of artificial compression, LA’s multifamily cap rates crossed 5% in Q4 2025 — a number that sounds modest but carries enormous implications for anyone who bought at the 2021 peak. We walk through what drove the move, why insurance is the underappreciated variable, and whether 5.5% is the new floor.