Post-1995 refers to buildings with certificates of occupancy dated February 1, 1995 or later — exempt from local rent control under the Costa-Hawkins Rental Housing Act. Trades at cap rates 50-75 bps tighter than pre-1978 in same submarket.
Costa-Hawkins (1995) exempts newer construction from local rent control regimes like LA City RSO and LA County RSTPO. Post-1995 buildings remain subject only to statewide AB 1482 (5% + CPI, max 10%) — dramatically less restrictive than RSO (now 4% ceiling).
The result: post-1995 buildings in LA consistently command tighter cap rates and higher price-per-unit than pre-1978 same-submarket equivalents. The premium has widened for three consecutive years.
The "post-1995 vs. pre-1978 cliff" is the defining structural story of LA multifamily in 2024-2026. Same submarket, same block, different decades — very different cap rates. Institutional buyers actively stack bids on post-1995; pre-1978 faces the July 2026 RSO rewrite headwind.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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