Understanding the Multifamily Market in California: Property Size Segmentation

Having a clear grasp of your market is vital for success, especially when it comes to multifamily properties in California. Whether you’re an investor or a sponsor, getting oriented is the first step. One of the most important choices you’ll make is determining which property sizes—measured by unit count—fit your strategy and goals. To do this well, you need more than just a snapshot of what’s currently listed for sale. You need a comprehensive view of the entire market.

A variety of tools can help, but many only provide data on active listings, which represent just a small slice of the overall landscape. If you want a broader, more accurate sense of the total population of multifamily properties, platforms like Costar are extremely valuable.

Costar enables users to search for properties by a variety of factors including location and unit count, allowing you to zero in on specific submarkets and property types. This level of detail is essential for anyone looking to analyze opportunities and build a well-informed investment strategy.

Let’s take a look at the current composition of California’s multifamily market, segmented by unit count. This breakdown provides a clearer picture of where the majority of properties fall and which segments might best serve different types of investors.

The data shows that just over half of California’s multifamily properties with five or more units have fewer than 10 units. The remainder include everything from mid-sized buildings to very large complexes, though about half of these fall within the 11-25 unit range. In total, nearly 75% of all multifamily properties in California have fewer than 25 units, making this segment especially attractive for most investors. The larger properties—those with 26 to more than 3,500 units—are much fewer in number and are often held by funds, REITs, or major institutional investors.

Here’s a snapshot of the multifamily property segmentation in California:

5 to 10 Units: 70,500
  5 Units: 15,249
  6 Units: 19,065
  7 Units: 7,760
  8 Units: 15,461
  9 Units: 5,400
  10 Units: 7,565

11 Units and Above: 65,840
  11 to 25 Units: 33,963
  26 to 50 Units: 13,891
  51 to 100 Units: 8,983
  101 to 150 Units: 3,585
  151 to 200 Units: 1,986
  201 to 500 Units: 3,031
  501 to 1,000 Units: 346
  1,001 to 3,500+ Units: 55

*Data informed by Costar platform search results.

Costar’s platform enables you to dive into the specifics of each segment, examining property details even if a property isn’t currently listed for sale. And remember: if you find an off-market property that fits your criteria, you always have the option to make an offer. This approach can open up new opportunities and give you a competitive edge in California’s multifamily market.