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Santa Monica Posts Sharpest Rent Decline in Los Angeles Metro

Chart or graph showing Santa Monica rental market data with declining rent trends in Los Angeles metro area
Santa Monica rents dropped 8.1% year-over-year, the steepest decline in LA metro, per Apartment List. (Photo Credit: Apartment List)

Rents in Santa Monica have fallen faster than in any other city in the Los Angeles metro area over the past year, dropping 8.1% annually as of April 2026, according to the latest data from several sources — a dramatic reversal from just 12 months ago, when a devastating wildfire was pushing Westside rents sharply higher.

Santa Monica posted the steepest year-over-year rent decline among all 27 cities tracked in the Los Angeles metro by Apartment List, falling 8.1% in the company's April 2026 report. Zumper's listing-based data showed an even sharper drop of 12% year over year as of February 2026. RentCafe recorded a more modest 0.4% annual decline for larger buildings.

By contrast, Los Angeles County rents were virtually unchanged year over year — up just 0.03% according to RentCafe and down 0.1% according to CoStar's fourth-quarter 2025 multifamily report. California statewide rents edged up 1.1% over the same period, according to RentCafe. According to Apartment List, the metro-wide annual rent decrease was 1.4%, while California rents rose 0.4% and national rents fell 1.7% over the same period.

The USC Lusk Center's Casden Multifamily Forecast, released Dec. 3, 2025, projected Los Angeles County rents would grow just 0.64% annually through October 2027.

The city's median rent now stands at $2,328 per month, down from roughly $2,527 a year ago. Among the 28 cities tracked by Apartment List in the LA metro, no city has seen a steeper decline.

"Santa Monica's rent growth over the past year has fallen behind both the state and national averages," Apartment List noted in its April report.

The decline marks a sharp turn from early 2025, when the January Palisades Fire — which destroyed more than 6,800 structures in adjacent Pacific Palisades and displaced tens of thousands of residents — sent a demand shock through the Westside rental market. In the months that followed, Santa Monica posted its first sustained rent increases since 2022, with Apartment List recording a median of $2,527 and year-over-year growth of 2.9% as of March 2025.

That surge proved short-lived. By July 2025, the market had recorded three consecutive monthly declines. By October, the median had slipped to $2,478. The current annual decline of 8.1% reflects a market that has moved decisively in the opposite direction.

The correction is visible across unit sizes tracked consistently by Apartment List. One-bedroom apartments have fallen from a median of $2,392 in March 2025 to $2,203 today — a year-over-year decline consistent with the 8.1% drop Apartment List recorded citywide. Two-bedroom units have declined from $2,867 to $2,641 over the same period. The overall median has slipped from $2,527 to $2,328, a year-over-year loss of nearly $200 per month.

Despite the sustained pullback, Santa Monica remains among the most expensive rental markets in Southern California. The city's median rent of $2,328 sits 7% above the LA metro-wide median of $2,176. Newport Beach leads the metro as its most expensive city at $3,484 per month, while Long Beach remains the most affordable at $1,770.

So far in 2026, Santa Monica rents have fallen 2.0% through March — a markedly different trajectory from the same period last year, when rents rose 2.1% in the first three months of 2025.

The current downturn is part of a longer pattern. After surging more than 20% cumulatively in 2021 and 2022 on pandemic-era demand, Santa Monica has now recorded three straight years of annual rent declines according to Apartment List. Rents fell 5.9% in 2023, 1.1% in 2024, and are now tracking far steeper losses in 2026.

Analysts point to a combination of factors intensifying the decline locally: an influx of new multifamily housing supply, strict rent control regulations, and ongoing population outflows from the city. Studios and one-bedrooms — unit types most exposed to competition from new inventory — are showing the largest percentage drops.

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