Fourplex Values Reach 11-Year High as Combined Inventory Falls to Historic Low Across All Three Zip Codes
With fewer than 14 active 2–4 unit listings across 90004, 90027, and 90028, buyer demand is outpacing supply at the sharpest ratio since 2015. Owners who understand these conditions hold rare leverage.
The combined active listing count across the three target zip codes dropped to 14 units in Q2 2026 — a figure not seen since 2015. The result is straightforward: buyers are competing aggressively for every qualified listing that comes to market, and properly priced properties are closing above asking price within days of exposure.
Days on market averaged 18 across all three zip codes — down from 27 in Q2 2025 and 34 in Q2 2024. The year-over-year trend is unambiguous. Properties priced within 3% of assessed value are receiving multiple offers within the first week of listing.
For owners evaluating exit timing, the combination of elevated per-unit pricing, compressed inventory, and active buyer competition represents a window that has not been present in this market since the pre-2020 period. The question for long-hold owners is not whether the market is favorable — it demonstrably is — but whether their equity is working as hard as it could in its current form.
Cap rates continued their compression to a median 4.1%, reflecting the premium buyers are placing on small multifamily cash flow in Central Los Angeles. For owners who purchased at 5.5–6.5% cap rates in the early 2000s and 2010s, the current trading environment represents a significant appreciation in asset value that may not persist through a rate cycle.
Average price of $412,000 per unit. The Western Avenue corridor logged the strongest appreciation in the submarket at +8.1% year-over-year. Long-hold owners along Vermont Avenue are beginning to explore exit options as equity positions mature significantly from original purchase prices.
Average price of $518,000 per unit — the highest per-unit average in the three-zip coverage area. Character duplexes from the 1920s–1940s commanded a 12% premium over standard inventory. Estate sales accounted for two of the four closings this quarter, confirming that life transitions remain a significant source of inventory.
Average price of $389,000 per unit. Corner lots exceeding 7,500 square feet are beginning to attract redevelopment premiums of 15–22% above per-unit comparables, as developer interest in small multifamily sites intensifies alongside ADU legislation changes.
| Indicator | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Active Listings | 14 | 23 | −39% |
| Avg Days on Mkt | 18 | 27 | ↓ 33% |
| List/Sale Ratio | 101.3% | 98.1% | +3.2 pts |
| Median Cap Rate | 4.1% | 4.4% | −0.3 pts |
| GRM Median | 16.4× | 15.1× | +8.6% |
Western Avenue Corridor Leads Appreciation at +8.1% Year-over-Year
Koreatown remains the highest-transaction-volume zip code in the coverage area, with 7 closings in Q2. The concentration of 1940s–1960s vintage fourplexes along the Western Avenue and Vermont Avenue corridors continues to attract both owner-user and investor buyers seeking stable cash-flow assets in a supply-constrained environment.
Long-hold ownership profiles — many with 20+ year tenure — dominate the landscape. As these owners approach retirement age, estate planning decisions and management fatigue are increasingly driving listing decisions. The typical seller in 90004 this quarter held their property for an average of 19.3 years.
Character Duplexes Command 12% Premium — Estate Sales Drive Two of Four Closings
Los Feliz consistently trades at the highest per-unit values in the coverage area, driven by the concentration of architecturally significant 1920s–1940s duplexes and the premium buyer demographic the neighborhood attracts. At $518,000 per unit, 90027 commands a 25.7% premium over Hollywood and a 20.6% premium over Koreatown.
Estate and probate sales accounted for 50% of Q2 closings in 90027 — a figure that reflects the aging ownership profile of the zip code's small multifamily stock. Professional trustees and executors managing these transactions are often motivated by timeline certainty over maximum price, creating opportunities for prepared buyers and listing brokers who specialize in this property type.
Redevelopment Premiums Emerging on Corner Lots as Developer Interest Intensifies
Hollywood's 2–4 unit market is bifurcating between standard cash-flow buyers and developers targeting sites with ADU upside or lot assembly potential. Corner lots exceeding 7,500 sqft are trading at redevelopment premiums of 15–22% above per-unit comparables, a spread that did not exist meaningfully two years ago.
Owners of corner-positioned buildings in 90028 should be aware that their property may qualify for a development premium conversation — a valuation metric that purely income-based analysis would not capture.
| Address | Zip | Type | Units | Close Date | Sale Price | Price/Unit | DOM | Cap Rate |
|---|---|---|---|---|---|---|---|---|
| 1847 W. Olympic Blvd | 90004 | Fourplex | 4 | Apr 3, 2026 | $1,640,000 | $410,000 | 11 | 4.2% |
| 3312 Vermont Ave | 90027 | Triplex | 3 | Apr 18, 2026 | $2,100,000 | $700,000 | 7 | 3.8% |
| 627 S. Western Ave | 90004 | Fourplex | 4 | May 9, 2026 | $1,870,000 | $467,500 | 14 | 4.0% |
| 4401 Rosewood Ave | 90028 | Fourplex | 4 | May 22, 2026 | $2,380,000 | $595,000 | 6 | 3.6% |
| 2218 Hillhurst Ave | 90027 | Duplex | 2 | Jun 1, 2026 | $1,520,000 | $760,000 | 9 | 3.5% |
| 1201 N. Kenmore Ave | 90029 | Fourplex | 4 | Jun 5, 2026 | $1,920,000 | $480,000 | 22 | 4.1% |
| 5544 Franklin Ave | 90027 | Triplex | 3 | Jun 11, 2026 | $2,550,000 | $850,000 | 5 | 3.4% |
| 831 N. Hobart Blvd | 90029 | Duplex | 2 | Jun 18, 2026 | $1,780,000 | $890,000 | 18 | 3.9% |
| 742 S. Catalina St | 90005 | Fourplex | 4 | Jun 24, 2026 | $1,610,000 | $402,500 | 31 | 4.3% |
12 additional closings are included in the full subscriber dataset.
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| Zip | Q2 2023 | Q2 2024 | Q2 2025 | Q2 2026 |
|---|---|---|---|---|
| 90004 | 5.1% | 4.8% | 4.5% | 4.2% |
| 90027 | 4.6% | 4.2% | 3.9% | 3.8% |
| 90028 | 5.4% | 5.0% | 4.6% | 4.4% |
| Quarter | 90004 | 90027 | 90028 | Total |
|---|---|---|---|---|
| Q2 2024 | 9 | 6 | 8 | 23 |
| Q3 2024 | 11 | 5 | 9 | 25 |
| Q4 2024 | 7 | 4 | 6 | 17 |
| Q1 2025 | 8 | 5 | 7 | 20 |
| Q2 2025 | 10 | 6 | 7 | 23 |
| Q2 2026 | 7 | 4 | 5 | 16 |
Avg hold period · Equity accumulation · Motivation index by zip…
Full ownership duration analysis and
equity accumulation data — subscribers only.
How Central LA Apartment Owners Are Selling Without Paying the Full Tax Bill
A 1031 exchange allows owners to defer capital gains and depreciation recapture taxes indefinitely by reinvesting proceeds into qualifying replacement property. For owners with 15+ year hold periods, the savings frequently exceed $300,000.
The math is stark. An owner who purchased a fourplex in 90004 in 2005 for $480,000 and sells today at $1.85M faces a combined state and federal tax liability — including depreciation recapture — that can exceed $380,000 in a straight sale. A properly structured 1031 exchange defers that entire amount, allowing the full $1.85M to be reinvested into replacement property.
Common 1031 destinations for Central LA sellers: Delaware Statutory Trusts (DSTs) offering passive ownership with institutional management, triple-net commercial properties with long-term leases, and larger multifamily properties in growth markets where management infrastructure is stronger.
The exchange timeline is strict: 45 days to identify replacement property, 180 days to close. Planning must begin before the sale, not after. If a 1031 exchange is part of your consideration, the conversation should happen well in advance of listing.
Koreatown Fourplex — Hold vs. Sell vs. Exchange
| Scenario | Assumption | Est. Outcome |
|---|---|---|
| Hold 5 more years | +3% annual appreciation | $2.11M est. |
| Straight sale today | Tax liability ~$380K | $1.47M net |
| 1031 to DST today | Full equity reinvested | $1.85M deployed |
The 1031 exchange scenario deploys $380,000 more than the straight sale — the equivalent of an entire property down payment — simply by structuring the transaction correctly. Figures are illustrative. Consult a qualified intermediary and CPA for your specific situation.
| Identification period | 45 days from close |
| Exchange period | 180 days from close |
| Max properties to ID | 3 (200% rule applies) |
| QI engagement | Before closing escrow |