Los Angeles rents rise 11% for two-bedroom apartment

But Zumper economist predicts “cooling off rent prices” ahead

(Getty; Illustration by The Real Deal)
(Getty; Illustration by The Real Deal)

Rents have increased about 11 percent for a two-bedroom apartment in Los Angeles, according to a year-to-year index comparison by apartment listing site Zumper.

Nationally, Los Angeles remained at its seventh place ranking in Zumper’s list of top 10 U.S. cities for priciest rentals.

The index, released every month, ranked U.S. cities by price of one-bedroom apartments. New York City was the most expensive, with a median rent of $3,790 for a one-bedroom. Boston took second place with a median rent of $3,000, but it basically tied San Francisco which also reported a median of $3,000 for a one-bedroom. Miami took fourth place with a median rent of $2,660. San Jose took fifth place with a median rent of $2,540 and San Diego ranked sixth with a median rent of $2,500.

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Los Angeles renters hoping for lower prices may be in store for some relief, said Anthemos Georgiades, Zumper’s chief executive officer. He forecasted rent prices are going to decline.

“Over the last two years, we saw unprecedented rises in rent prices driven by a booming economy, low interest rates, a one-off spike in demand post vaccines, and supply chain issues that delayed new units coming to market.,” said in a statement on the recent index. “Now — with inflation and interest rates high and the labor market beginning to tighten — Americans are holding off on major economic decisions. Household formation has paused and even inverted, driving demand down and cooling off rent prices.”

Georgiades’ rent forecast was in harmony with guidance from John Burns Real Estate Consulting, which released a report in October. Concerns led by anxiety over recession will lead to rents softening in many areas of the country, the Burns forecast said. “This short-term pain for rental investors should be offset by the long-term gain of a stable economy and lower borrowing rates,” the company said in a statement.

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