This year’s data show that while multifamily completions moderated from 2024’s elevated pace, the sector’s shift toward larger properties continued. At the same time, larger has not necessarily meant taller, as lower-rise buildings continue to account for most new multifamily completions.

Los Angeles Remains a Top Destination for Small Balance Multifamily Investment
The L.A. market for small balance multifamily has been a standout throughout the current economic expansion. Cap rates have remained below national trends for both the rest of the small balance market and the average set by all multifamily properties. Despite higher risk appetites among borrowers, lenders remain cautious as loan-to-value ratios (LTVs) have moderated.
Looking ahead, a disciplined lending environment will reduce L.A. small balance multifamily’s sensitivity to any market corrections.
Produced in conjunction with Chandan Economics and tailored for the small multifamily investors, this report will explore recent changes in:
- Cap Rates & Spreads
- LTVs
- Debt Yields