LA’s rent prices slow for first time in years, Zillow report shows

Cost is still among highest nationwide, but data suggests US resi market may also have hit peak

Sep.September 21, 2018 09:00 AM
LA skyline (Credit: Wikipedia)

The median rent in Los Angeles County dipped slightly in August, suggesting prices may have finally hit a peak.

While the drop was only half a percentage point year over year, it compared to a 4.3 percent rise in 2017 and a 6.5 percent increase in 2016, according to new data from Zillow, the Los Angeles Times reported.

The information also suggests a turn throughout the country: national median rents for vacant units dipped in August year over year for the first time since 2012.

New supply of residential units may be a contributing factor, particularly at the higher end of the residential market where rent prices slowed most significantly, according to the Times. Nationwide, rents increased between 3 and 4% year over year. That compared to the peak period in 2016, when rent growth was around twice that.

In Los Angeles, prices are still high. Zillow pinned L.A.’s median rent at $2,442 a month, consistent with other estimates that put it among the most expensive markets in the country.

But steadying rents will be a relief for renters in what has been an owners market for years. Landlords may be seeing some would-be renters choose to buy instead.

On the flip side, supply may tighten in the near future, which would drive up rents. Multifamily construction slowed nationwide, with fewer units expected to enter the market this year compared with last year’s peak of 318,000. [LAT] — Dennis Lynch 

Related Articles

Citizen Rascoff. Spencer Rascoff is going into journalism publishing (Credit: Getty Images and iStock)

This just in: Zillow co-founder launches LA-focused tech industry news site

From left, clockwise: Daydream Apartments’ Griffin and Grace on Spring, Douglas Emmett’s The Glendon at Westwood and Carlyle Group’s Sofia Los Angeles

Here are LA’s 5 biggest multifamily sales of 2019

Relevant Group’s Richard Heyman and the project site (Credit: Google Maps)

Relevant Group plans 87-unit apartment complex in South LA

A rendering of the project

Developer files plans to build 87-unit apartment complex in Pico Union

Zillow President Jeremy Wacksman

Zillow launches its high-stakes home-flipping business in LA

A rendering of the project and Douglas Bystry, President and CEO of Clearinghouse

Koreatown resi complex marks firm’s entry into Opportunity Zones

A rendering of the property, Cityview CEO Sean Burton and Virtu Investments principals Michael Green and Scott McWhorter (Credit: LCP 360) 

Virtu pays $71M for Warner Center complex in Opportunity Zone

A map of area from the LA County Fire Department (Credit: Los Angeles County Fire Department Air Operations)

Getty fire remains only partially contained as officials brace for strong winds