What's Happening in the Long Beach Multi-Unit Market Right Now — And What Buyers Need to Know
If you've been watching the Long Beach multi-unit market from the sidelines, here's the headline: buyers are back. After two years of paralysis waiting for interest rates to come down, investors made a collective decision in 2025 to stop waiting and start building wealth — and the numbers show it.
Long Beach fourplex sales jumped 70% in 2025, going from 48 sales in 2024 to 82 closed transactions. For context, Long Beach has roughly 2,800 fourplexes — more than any other city in Southern California — making this the deepest, most active small multifamily market in the region. When that market moves, it tells you something real about buyer psychology.
What the Data Actually Says
Here's where the fourplex market landed in 2025:
Average sales price: $1.39 million
Average price per unit: $347,000
Average price per square foot: $409
Average cap rate: 5.5%
Gross rent multiplier: 13.5x
Average days on market: 64
The GRM is the number I trust most because it's derived from every transaction, not self-reported by listing agents who sometimes fudge cap rates. At 13.5x, a fourplex grossing $100,000 annually prices out around $1.35M — which lines up almost exactly with where sales are landing.
What's notable is that pricing has stayed remarkably stable. After a brief dip to $1.25M average in 2024, prices bounced right back to $1.4M in 2025. The market didn't break. It digested higher rates and kept moving.
The Two Markets Inside Long Beach
There's a split happening in Long Beach that buyers need to understand before they go looking.
The 2–4 unit market (duplexes, triplexes, fourplexes) is holding value and selling at something close to full price. Buyers have bid these up because the financing stays residential — a conventional 30-year loan on a fourplex looks completely different than a commercial loan on an 8-unit. That residential financing advantage has kept demand strong and values firm.
The 5+ unit market is a different story. Commercial multifamily in Long Beach is trading at 20–25% off peak values. Loans that were originated five years ago are either adjusting up or coming due, and owners who don't want to refinance at today's rates are creating real buying opportunities. If you've got the capital for a commercial deal, this is where the discount lives right now.
Why ADUs Have Changed the Math for Long Beach Buyers
What's different about buying a multi-unit property in LA County today versus five years ago is the ADU layer. Long Beach has gone from near-zero ADU production a decade ago to over 400 permits per year, and the city is still updating its local ordinances to align with — and in some cases exceed — state standards.
For buyers, this matters in two ways.
First, many of the multi-unit properties coming to market in Long Beach already have an ADU on the lot — a converted garage, a detached backyard unit, a basement conversion. Before you close on anything, understanding exactly what you're buying with an existing ADU is non-negotiable. Permitted and unpermitted units are treated very differently at appraisal, and an unpermitted ADU can cost you significantly more than most buyers anticipate when they find out after the fact.
Second, buyers are underwriting ADU potential as part of their acquisition strategy. A Long Beach duplex on a lot with room for a detached ADU isn't just a duplex — it's a triplex-in-waiting. California's ADU laws make it easier than it's ever been to add units to existing multi-family parcels, and lenders are starting to count that future income when you qualify. If you want to understand exactly how that works, the mechanics of using ADU rental income to qualify for your mortgage have gotten more favorable, not less.
The AB 1482 Reality
One thing buyers in Long Beach consistently underestimate is how California's statewide rent control law — AB 1482 — applies to their properties. Long Beach has no local rent control ordinance, but AB 1482 covers most multi-family buildings whose certificate of occupancy was issued 15 or more years ago. The 2026 allowable rent increase cap is 8% through July 31 and 8.7% starting August 1.
There's one wrinkle that catches buyers off guard: the single-family home exemption from AB 1482 disappears the moment there's a second unit on the lot. If you're buying what looks like a house with a converted garage unit, that property likely falls under AB 1482's protections — even if the main house would otherwise qualify for the exemption. Know this before you model your rents.
What Buyers Are Targeting Right Now
The smartest buyers I'm seeing in Long Beach right now are looking for three things:
1. Duplexes and triplexes with ADU upside. Adding a permitted ADU to a 2–3 unit building in a compliant city like Long Beach is one of the most reliable ways to force appreciation and increase gross rents. The financing options to make that happen — DSCR loans, HELOCs, construction loans — have expanded considerably.
2. Commercial multifamily at a discount. The 5+ unit market is where the pricing dislocation is most pronounced. If you can navigate commercial underwriting and have a larger down payment, the per-door costs on 8–12 unit buildings in Long Beach right now look very different from what they did in 2022.
3. Properties with existing but unpermitted units — with a plan. Some of the best value in Long Beach is in properties where a previous owner added a unit without permits. The right buyer comes in knowing exactly what legalization looks like, what it costs, and what the permitted income means for their valuation. Checking for this before you go under contract is the difference between a deal and a headache.
The Bottom Line
Long Beach is one of the strongest multi-unit markets in LA County — deep inventory, stable pricing, active buyer pool, and genuine ADU upside at virtually every product type. The 70% jump in fourplex sales in 2025 wasn't a fluke. It was buyers acknowledging that timing the rate market is a losing game and that real estate rewards ownership, not patience.
If you're evaluating a multi-unit purchase in Long Beach and want to understand what the ADU angle means for your specific property, that's exactly what I help buyers work through. Reach out and let's run the numbers.
Ready to Start your multi unit search?
Call or text Dylan to schedule Multi-unit investor consult at (714) 860 - 2868
