How will the stalled ULA repeal and new transit investments affect multifamily property values in Culver City?
How will the stalled repeal of Measure ULA and the wave of new transit investments shape multifamily values in Culver City? The short answer is that transaction friction may remain elevated in the near term, but long term pricing power will be dictated by how effectively transit expansion and zoning capacity translate into new supply.
“When you layer a transfer tax like Measure ULA on top of rising construction costs and then pair that with major transit expansions, you create a bifurcated multifamily market,” said Oron Maher, Broker-Director at Maher Commercial Realty. As a licensed real estate broker and California attorney, Maher notes, “In submarkets like Culver City, where transit access and zoning capacity are converging, long-term values will be driven less by today’s political headlines and more by whether policy ultimately incentivizes or suppresses new supply.”
The proposal to eliminate Measure ULA will not appear on the November ballot. That decision keeps the existing transfer tax structure in place for now, preserving a material cost on larger transactions within the City of Los Angeles. Although Culver City is its own municipality, capital does not respect city limits. When liquidity is impaired in one jurisdiction, investor behavior adjusts regionally. Buyers demand pricing concessions, hold periods extend, and disposition strategies become more selective.
From a supply and demand perspective, transfer taxes function as transaction friction. They do not directly change rental demand, but they can suppress sales velocity and discourage recapitalizations or development exits. Over time, that friction can reduce the pace at which capital recycles into new projects. When construction costs are already elevated, additional uncertainty around exit pricing weighs on underwriting assumptions.
At the same time, the Los Angeles City Council is considering a ballot measure that would cancel the ULA tax on new apartment buildings within the first ten years of construction. If adopted, such a measure would selectively remove friction for newly delivered product while leaving legacy assets subject to the tax. That would create a structural divergence between stabilized older properties and newly built communities. Developers would have stronger incentives to deliver projects, while buyers of older stock might continue to price in exit penalties.
Overlaying this legal and structural environment is a significant wave of transit investment. The Southern California Association of Governments is updating its SB 79 implementation map to incorporate previously omitted transit hubs, including stops along the forthcoming K Line extension and the Sepulveda Transit Corridor. A judge has cleared the path for the four hundred million dollar Vermont Avenue bus project, which will add dedicated lanes along a twelve mile stretch. Even the delayed LAX Automated People Mover, now projected to open later than anticipated, remains part of a broader regional mobility upgrade.
Transit infrastructure alters the supply equation in two ways. First, it increases the desirability of land near stations by reducing commute times and expanding job access. Second, under state housing law frameworks such as SB 79, it can expand zoning capacity around those nodes. When zoning capacity expands in tandem with rail or bus investment, developers gain both demand tailwinds and legal entitlement pathways. The result is often an acceleration of multifamily proposals within a defined radius of new stations.
Culver City has distinguished itself by aggressively promoting multifamily housing production relative to the City of Los Angeles. That pro housing stance matters. In a constrained regional market, jurisdictions that approve projects more predictably attract a disproportionate share of capital. CBRE Research has consistently emphasized that rent growth and long term value correlate with job access and transit connectivity. When a city aligns zoning capacity with transit corridors, it positions itself to capture both.
The interaction between Measure ULA uncertainty and transit expansion therefore creates a bifurcated regional environment. Within Los Angeles city limits, large multifamily trades must account for transfer tax exposure, which can temper pricing and slow turnover. In Culver City, where no equivalent tax applies and where local leadership has signaled openness to housing production, capital may view sites near existing or planned transit as comparatively efficient deployment opportunities.
This does not imply immediate cap rate compression. Interest rate policy, construction pricing, and lender discipline still govern underwriting. However, as infrastructure projects such as the K Line extension and the Sepulveda corridor move closer to completion, land near those alignments may experience incremental competition. If SB 79 mapping updates formally incorporate additional hubs in Los Angeles County, adjacent parcels that were previously overlooked could see renewed entitlement interest.
For existing multifamily owners in Culver City, the strategic question is whether future supply will outpace incremental demand. If zoning capacity expands faster than absorption, rent growth could moderate. If approvals remain disciplined and construction financing tight, new units may arrive more slowly than projected. In that case, proximity to enhanced transit could support stronger occupancy and pricing resilience relative to less connected submarkets.
Investors should also consider the ten year exemption proposal for new construction within Los Angeles. If enacted, it could pull development activity toward projects that qualify, while leaving other assets subject to higher transaction costs. Over a full cycle, that policy choice could influence where institutional capital prefers to build, hold, and ultimately exit. Culver City, by virtue of its municipal independence and demonstrated production track record, may benefit from comparative clarity.
For multifamily owners and developers evaluating acquisitions, assemblages, or dispositions in Culver City, the analytical focus should be on station adjacency, zoning envelope, and realistic construction timelines rather than ballot drama. Maher Commercial Realty advises clients on underwriting transit oriented parcels, assessing entitlement risk, and positioning assets for strategic sale or long term hold in light of evolving policy structures.
If SB 79 mapping updates and regional rail expansions converge with Culver City’s pro housing posture while Measure ULA continues to constrain liquidity within Los Angeles, the relative value of transit proximate multifamily sites in Culver City could strengthen over the next development cycle.
This analysis is based on reporting originally published by Urbanize Los Angeles.
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