CDPM CURRENT
Insights & Guidance for Property Owners Across Los Angeles
December 5, 2025
2025 Los Angeles Rental Market Wrap-Up: What Owners Should Expect in 2026
As 2025 comes to a close, one theme stands out across Los Angeles’s rental landscape: well-located, well-maintained rental homes are outperforming the rest of the market.
From the Westside’s competitive coastal neighborhoods to the San Fernando and Conejo Valleys' family-driven stability, long-term tenancy, owners who invested in upkeep, accurate pricing, and smart management benefited the most in 2025.
Heading into 2026, property owners have a clear opportunity to strengthen returns, reduce vacancy, and position their homes for the new year’s shifts. This wrap-up highlights key 2025 takeaways and what owners should be preparing for now.
🌟1. Neighborhood Performance Diverged—Local Expertise Mattered More Than Ever While some parts of LA softened, specific high-demand neighborhoods remained exceptionally strong in 2025.
High-Performing Owner Markets in 2025:
- Westside: Brentwood, Santa Monica, Venice, Westwood
- Luxury LA: Beverly Hills, Bel Air, Holmby Hills, Century City
- Valley: Sherman Oaks, Studio City, Burbank, Encino
- Conejo Valley: Thousand Oaks, Westlake Village, Agoura Hills, Oak Park
- Eastside: Hancock Park, Los Feliz, Silver Lake
- DTLA: Arts District, South Park (especially for lofts)
For owners, this means:
👉 2026 pricing must reflect the unique micro-market you’re in—not general LA trends.
👉 Neighborhood-level leasing strategy will be even more important moving forward.
🌟 2. Property Condition Became a Major Differentiator for Return on Investment In 2025, homes that were even modestly updated often leased faster and secured stronger tenants.Top upgrades that improved owner returns this year:
> Updated lighting
> Fresh paint and flooring
> Modern kitchen/bath touches
> Smart home features
> Refreshed landscaping
These improvements didn’t just lift rents—they cut vacancy dramatically.
Owner takeaway for 2026:
Well-maintained homes will continue to command premium rents and longer tenancies—especially in luxury, coastal, and family-focused markets.
🌟 3. Tenants Stayed Longer—A Win for Owners Focused on Stability 2025 saw a notable rise in 24-month leases, early renewals, and long-term stays, especially in:
- Westside
- San Fernando Valley
- Conejo Valley
- Hancock Park and Los Feliz
Owners who partnered with responsive managers and maintained their homes saw the highest renewal rates.
2026 Outlook:
Expect long-term renters to dominate again—creating opportunities for owners seeking predictable cash flow and reduced turnover costs.
🌟 4. Hybrid Work Continued to Shape Rental Demand
Lifestyle-rich neighborhoods that support hybrid work—like Brentwood, Los Feliz, Silver Lake, Hollywood Hills, and the Arts District—continued to outperform the broader LA market.
Tenants preferred homes with:
- A dedicated workspace
- Natural light
- Open layouts
- Outdoor living areas
- High-speed Wi-Fi infrastructure
What this means for owners in 2026:
Homes that accommodate hybrid lifestyles will lease faster and more consistently. If your property can be staged or positioned with this in mind, you’ll see a measurable advantage.
🌟 5. Strategic Pricing Determined How Quickly Homes Leased
Across our portfolio, the most successful owners were those who:
- Adjusted pricing based on real-time neighborhood data
- Listed during peak seasons
- Responded quickly to showing requests
- Stayed competitive with local upgrades
