Rental prices in Santa Monica fell sharply in March, dropping 2.3% in a single month as the city recorded the steepest annual rent decline in the Los Angeles metropolitan area.
The median rent in the city now stands at $2,318, according to the latest Apartment List data. One-bedroom units have a median rent of $2,194, while two-bedroom apartments average $2,630.
The March decline marks an acceleration of a downward trend that has gripped the coastal rental market for more than a year, offering potential relief to tenants who weathered years of double-digit increases in one of California's most desirable housing markets.
The month-over-month drop of 2.3% in March represents a significant acceleration from February, when rents fell 0.5% compared to the previous month.
In February, the overall median rent stood at $2,388 — $70 higher than the current March figure. One-bedroom units were listed at a median of $2,261 in February, compared to $2,194 in March. Two-bedroom apartments fell from $2,710 to $2,630 over the same period.
The February report showed year-over-year declines of 3.8%, but that figure has now ballooned to 7.5% in March, indicating the pace of decline is quickening rather than stabilizing.
"Despite variation among data sources, the overall trend points to a cooling rental market in Santa Monica, with prices holding near record levels but showing limited growth both month to month and year over year," according to rental market analysis.
Two months into 2026, rents in Santa Monica have fallen 2.3% year-to-date. That trajectory contrasts sharply with the same period last year, when rents had increased 1.0% from January to February 2025.
The 7.5% annual decline places Santa Monica well behind both state and national trends. California rents rose 0.5% over the past year, while national rents fell just 1.5%.
Within the Los Angeles metropolitan area, Santa Monica's decline stands out as the most severe among the 27 cities tracked in regional rental databases. Metro-wide rent growth stands at negative 1.2% annually — significantly better than Santa Monica's performance.
Despite the declines, Santa Monica remains among the more expensive rental markets in the region. The city's median rent of $2,318 is 7.0% higher than the metro-wide median of $2,167.
The current downturn follows a turbulent period for Santa Monica rentals. In 2021, rents surged 12.3% as pandemic restrictions eased and demand returned to coastal markets. That was followed by a 9.2% increase in 2022.
However, the market shifted dramatically beginning in 2023, when rents fell 5.6%. The decline continued in 2024 with a 1.0% drop and accelerated in 2025 with a 3.3% decrease.
For renters, the cooling market may offer modest relief and improved negotiating leverage compared to recent years when steep annual increases were common in desirable coastal markets. For landlords and property investors, the trend signals a need to adjust expectations in what has become a more competitive rental landscape.
Whether rents will continue declining, stabilize at current levels or resume growth remains uncertain as economic conditions and migration patterns continue to evolve.