Fourth Quarter 2024
Ventura County Multifamily Market Sees Growth During Shifting Trends in Q4 2024
New inventory rises and sales surge in Ventura County’s multifamily market, but vacancies, rents, and cap rates reflect a market in transition.
Investors are adapting to shifting borrowing costs, as reflected in the volatility of deal sizes.
MARKET OVERVIEW
In Q4 2024, Ventura County’s multifamily housing market reflected shifting dynamics. Vacant units decreased by 0.4% quarter-over-quarter but rose 6.7% year-over-year, totaling 1,932. Developers added 278 new units during the quarter, up from 70 in the prior quarter and 43 in Q4 2023. Year-to-date, 1,063 units were delivered—a 71.7% increase from the same period in 2023—highlighting the expansion in inventory. These trends are evident in the vacancy rate, which held steady quarter-over-quarter but edged up 10 basis points year-over-year to 3.8%.
Average asking rents increased by just $1 quarter-over-quarter but rose 2.5% year-over-year to $2,599 per unit, marking a slight pullback from mid-2024’s all-time high. Despite headwinds such as high interest rates, rising construction costs, and subdued rent growth, Ventura County is experiencing a waning wave of new development. As of Q4 2024, 1,816 units were under construction—a 13.3% decline from the prior quarter but a 23.6% increase year-over-year.
Sales activity in Q4 2024 presented a mixed picture. Transaction volume fell 7.0% quarter-over-quarter, yet year-to-date sales volume surged 102.7% from the previous year’s low, surpassing $570 million. The average sale price per unit declined 18.9% quarter-over-quarter to $331,748. Regionwide, the total number of units sold year-to-date increased 128.9% from the same period in 2023. Meanwhile, the average capitalization rate rose 70 basis points year-over-year to 4.9%.
These trends reflect an evolving market where rising construction activity contrasts with moderated rent growth, increasing vacancies, and fluctuating sales performance.
TRENDS TO WATCH
Ventura County’s multifamily market fundamentals are expected to remain steady, adjusting to economic shifts, employment trends, and the ongoing challenge of homeownership affordability. While these factors continue to drive rental market growth, the pace has slowed. Rising borrowing costs have heightened financial risks, yet demand persists in select asset classes, even as growth prospects appear more restrained.
In Q4, the Ventura County multifamily market recorded just one sale of a property with over 100 units: The Sofi Ventura, a 255-unit apartment complex at 6250 Telegraph Rd. in South Ventura County. The property sold for $88 million in October, equating to $345,098 per unit. Originally built in 1976 and renovated in 2021, the asset delivered a substantial gain for the seller, who purchased it in 2019 for $72.5 million.
Investors are adapting to shifting borrowing costs, as reflected in the volatility of deal sizes. The average deal size in Q4 2024 jumped to $17,582,667—an 86.1% increase from the prior quarter but a 47.0% decline year-over-year. With rents and inflation expected to moderate and interest rates set to ease from recent highs, investor and developer confidence is strengthening.
The multifamily market will continue to evolve alongside broader economic and mortgage rate trends. With mortgage rates near their highest levels since 2002 and home prices rising, homeownership remains out of reach for many, sustaining rental demand. However, slower rent growth is likely to put pressure on pricing as investors adjust to shifting market conditions, including supply imbalances and evolving demand trends.
