The table below summarizes the key annual market indicators across our focus region.

Key Takeaways for KW Regional Advisors (Q4 2025)

Market Tightness and Vacancy

• The San Fernando Valley submarkets (3.4% average vacancy) ²⁷and Santa Barbara (3.7% vacancy) ²⁸ are the tightest markets in your region.
• The vacancy rate in the San Fernando Valley is approximately 30% below the overall Los Angeles market average²⁹.
• The Los Angeles Market Overall (5.7%) ³⁰is currently experiencing its highest vacancy rate this decade, excluding 2020³¹.
• San Luis Obispo has the highest vacancy rate at 10.8% ³², marking its highest level in more than five years³³. This is directly attributable to the delivery of the 214-unit Reserve at Vinedo property at the end of 2025³⁴.
• Vacancy in Los Angeles is concentrated in newly delivered 4 & 5 Star assets, which currently have a 10.0% vacancy rate³⁵.

Rent Growth and Demand

• Santa Barbara is the strongest performer for rent growth in your region, posting 0.5% year-over-year growth ³⁶, outperforming the national benchmark of 0.2%³⁷.
• Ventura has experienced negative rent growth at -0.3%³⁸. Landlords in Ventura have been offering concessions due to new supply³⁹.
• Both Los Angeles and San Luis Obispo saw 0% annual asking rent growth^40404040. Los Angeles rents have remained relatively flat since 2023, with concessions becoming common⁴¹.
• Negative net absorption was reported in both Santa Barbara (-12 units) ⁴²and San Luis Obispo (-103 units)⁴³, indicating softening demand in the smaller coastal markets.

Supply Dynamics and Investment

• The Los Angeles market delivered the most units (11,379) ⁴⁴and has the largest construction pipeline (17,808 units under construction)⁴⁵. However, new construction starts have declined by about 20% annually since 2021⁴⁶.
• Ventura's supply additions (1,143 delivered units) are the most in a calendar year in the past decade ⁴⁷, pushing vacancy above its long-term average⁴⁸.
• Santa Barbara faces minimal supply-side pressure, with only 541 units in the construction pipeline ⁴⁹and only 25 units delivered in the last 12 months⁵⁰.
• Sales volume remains depressed across the region compared to peak years. Los Angeles' volume of $7.9B ⁵¹is an improvement over 2023 lows ($1.3B/quarter) but far below the 2021/2022 highs ($3.0B/quarter)⁵².
• San Luis Obispo reported the lowest 12-month sales volume at $25.5M⁵³.