LA rent is expected to increase by $136 per month: report

Homeownership is expected to remain stagnant in coming years

Los Angeles /
Oct.October 11, 2017 02:00 PM

Renters in Los Angeles will have to pay roughly $136 more a month – nearly $1,630 a year – for housing by 2019, a University of South California Casden Economics Forecast found. The increase is largely attributable to low housing availability, as well as positive wage growth and employment, according to the report.

In L.A., millennials will especially impact rent as they continue to choose multifamily apartment complexes over single-family homes. Average monthly rent in the county today clocks in at $2,237 with a 3.94 percent vacancy rate. By 2019, that number is expected to grow to $2,373 a month with 3.91 percent vacancy.

The numbers are even bleaker for out-of-state transplants.

Local renters who moved from another state pay roughly $200 more than current residents, while renters who moved from somewhere else in the state pay about $124 more.

Rising rents are also likely to negatively impact employers, who could have trouble recruiting out-of-state talent due to the high cost of living. Rent growth is outpacing income growth at an unsustainable level, concluded the study’s authors, Richard Green and Christopher Thornberg.


Related Articles

arrow_forward_ios
Los Angeles Councilman Marqueece Harris-Dawson and Area around USC in Exposition Park (Wikipedia, Hunter Kerhart Architectural Photography)
New LA plan seeks to protect affordable housing near USC
New LA plan seeks to protect affordable housing near USC
Eden Housing's Kevin Leichner and Iris Gardens (Eden Housing, Clear Capital, Getty)
Eden Housing pays $31M for affordable housing complex in Azusa
Eden Housing pays $31M for affordable housing complex in Azusa
(Illustration by The Real Deal with Getty)
In Pasadena, houses of worship can build affordable housing
In Pasadena, houses of worship can build affordable housing
Mike Sullivan and rendering for 6000 W. Hollywood Blvd (The Sullivan Family, Getty Images)
Toyota of Hollywood could turn into a retail village
Toyota of Hollywood could turn into a retail village
Oak Road 's David Aghaei with 5600 block of S. Broadway
Affordable housing developer plans 38-unit building in South LA
Affordable housing developer plans 38-unit building in South LA
Brasa Capital Management's Eric Samek and rendering of 3450 W. 43rd Street in Los Angeles (Brasa Capital, HBA)
Streamline Moderne apartment house coming to Leimert Park
Streamline Moderne apartment house coming to Leimert Park
From left: Gavin Newsom and California State Representative Buffy Wicks (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images)
California Legislature Passes 4 Housing Bills
California Legislature Passes 4 Housing Bills
View of Sylmar Village at 12534 San Fernando Road (JZA)
Sylmar project aims for 100% affordable market
Sylmar project aims for 100% affordable market
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...