After a slowdown driven by remote work and weakened demand, the Southern California real estate market is showing signs of a rebound. A new report from Colliers International reveals improvements across multiple sectors in Los Angeles and Orange County during the first quarter of 2025, with notable shifts in vacancy rates and rental activity.
Multifamily and Retail Trends Diverge
The multifamily housing sector in both counties posted steady growth in occupancy and rents.
In Los Angeles, the occupancy rate climbed to 95.4%, up 10 basis points (bp) from the previous quarter and 20bp higher year-over-year—approaching the 20-year average of 95.7%. The average rent per unit rose 0.5% to $2,272, while the annual increase was 1.0%.
Orange County reported a 96.2% occupancy rate, also up 10bp from the prior quarter, though down 10bp from a year ago. The average rent was $2,622 per unit…