The apartment market north of Wilshire is still one of the better long-term holds in Santa Monica. But it’s not the no-brainer it used to be.
For years, the play was simple: buy a building in 90403, live with rent control, collect the checks, and let Santa Monica do the heavy lifting. Eventually, you look smart!
Santa Monica dirt is still excellent. Tenants want to be here. They want Montana Avenue, Whole Foods, easy access to Pence Hathorn Silver, the beach, schools, coffee, restaurants, and the ability to live without being handcuffed to a car.
But buyers are no longer paying fantasy prices just because the building has 90403 ZIP code.
The numbers matter again.
Rental data can vary depending on the platform, but across several of the largest online rental websites, the trend is consistent: Santa Monica rents are still high, but the market has softened. Apartments.com shows average rent around $2,971, down about 2% year over year. Apartment List puts the median rent at $2,336, down 6.7% year over year. Another major online rental platform shows average rent around $3,300, with two-bedrooms around $3,995.
Pick your source and the numbers vary. The takeaway doesn't: rents remain expensive, but they are not trending higher right now.
A buyer looking at an 8-unit building north of Wilshire is not just buying “Santa Monica.” They are buying a rent roll, old plumbing, insurance bills, tenants who may never leave, and whatever maintenance the seller has been pretending is not a problem.
Rent control is the main focus. Santa Monica’s 2026 general adjustment is 2.6%, capped at $70 for higher-rent controlled units. That helps, but it does not turn a $1,900 tenant into a $3,900 tenant.
This is where sellers and buyers of these buildings get sideways.
Seller: “The market rents are much higher.”
Buyer: “Great. Are those low paying tenants leaving?”
Usually, overwhelmingly, no.
The good buildings still sell. Clean fourplexes, six-units, and smaller buildings with decent rents, parking, good bones, soft-story retrofit repairs completed, and some real upside still get attention.
But tired buildings with low rents, old systems, and sellers quoting imaginary pro forma numbers are a different story.
In the broader L.A. multifamily market, recent reports show cap rates around 5%, vacancy around 5.6%, and flat rent growth. Santa Monica is better dirt than most of Los Angeles, but it does not get its own interest-rate policy.
For smaller Santa Monica apartment buildings, a lot of the current conversation is in the 4.5% to 5.5% cap-rate range, with GRMs often around 12 to 14. Better buildings can do better. Problem buildings should not.
The bottom line: North of Wilshire multifamily is still great real estate.
The location is scarce. The tenant demand is real.
Replacement cost is brutal. New supply is limited.
The buildings that sell are the ones where the income, condition, upside potential, and price can all be defended with a straight face.
Santa Monica dirt is still good.
The Numbers Behind the Story;
- Santa Monica average rent: $2,971/month, about 81% above national average, and down 2% year over year according to Apartments.com’s May/June 2026 rent data.
- Apartment List’s June 2026 Santa Monica report shows median rent at $2,336, down 6.7% year over year.
- Zillow’s Santa Monica rent data shows average rent around $3,300, with 2-bedrooms around $3,995/month.
- Santa Monica Rent Control’s 2026 general adjustment is 2.6%, capped at $70 for eligible units at or above $2,674, effective September 1, 2026.
- Matthews’ Q1 2026 Los Angeles multifamily report shows 5.1% cap rate, 5.6% vacancy, 0% rent growth, and $2.3K average asking rent per unit.
- A Santa Monica-specific broker report places many 5–11 unit apartment buildings in the 4.5%–5.5% cap-rate and 12–14 GRM range for 2025–2026. Treat that as brokerage-market guidance, not a public-record benchmark.
In Other 90402 Real Estate News
Right now there are 25 Active listings ranging from $4,499,000 to $69,000,000.
Only two new listings since my last update:
452 18th Street - Listed for $6,500,000. This is an RTI development opportunity (RTI = “ready to issue” - meaning plans and permits are approved by the city and ready to go). This 8,937 sqft lot was purchased “off-market” in 2024 for $4,020,000.
363 22nd Street - Listed for $7,495,000. Built in 2024, this is a single-level, 3,700sqft, modern farmhouse. Lot was purchased in 2021 for $3,685,000.
There are seven properties in escrow:
628 26th Street – Listed for $2,695,000.
428 10th Street – Listed for $8,995,000.
415 21st Street - Listed for $5,995,000.
523 9th Street - Listed for $7,995,000.
416 21st Place - Listed for $8,995,000.
615 23rd Street - Listed for $10,995,000.
1202 San Vicente - Listed for $7,995,000.
Three closings since my last update:
420 Alta Avenue – Sold for $7,000,000. Originally listed for $8,500,000.
241 19th Street – Sold for $7,995,000.Originally listed for $8,995,000.
540 Lincoln Blvd - Sold privately for $3,960,000.
