This report compares Van Nuys apartment sales for Rent-Stabilized (RSO) and AB 1482-regulated properties, highlighting year-over-year changes and key market trends through 2025 year-to-date.

RSO vs. AB 1482 Overview

In Los Angeles, multifamily assets generally fall under one of two rent control frameworks: Rent Stabilization Ordinance (RSO) and AB 1482, also known as the California Tenant Protection Act of 2019. RSO applies to properties built before October 1, 1978 and imposes stricter rent increase limits, along with enhanced tenant protections. AB 1482, by contrast, governs newer properties, typically those built after 1980, and allows modest annual rent increases tied to inflation, subject to statewide caps. Understanding how each regulatory environment influences pricing, yields, and investor demand is essential when evaluating market performance.

 

RSO product has seen continued price softening as rising rates and operating cost pressures (insurance, utilities, maintenance) eat into investor appetite. Cap rates have expanded more than a full percentage point since 2023, with buyers emphasizing cash flow stability over appreciation. GRMs have compressed accordingly, indicating stronger income multiples but overall lower valuations.

 

RSO product has seen continued price softening as rising rates and operating cost pressures (insurance, utilities, maintenance) eat into investor appetite. Cap rates have expanded more than a full percentage point since 2023, with buyers emphasizing cash flow stability over appreciation. GRMs have compressed accordingly, indicating stronger income multiples but overall lower valuations.