Richard K. Green, director of the USC Lusk Center for Real Estate, told KPCC that the common idea that people should not spend more than 30 percent of their income for rent is simply not realistic for more people in LA.
"It’s not available for many, many people who live in Southern California,” Green said. "When we look at Los Angeles, Orange County, and San Diego, the way I do the measurements, they are three of worst cities in the country for affordability."
The study suggests the increase in renting can be due in part by the economic changes of the late 2000s, when foreclosures displaced millions of people, and the recession led to vast unemployment and changes in household budgets for those who would normally consider buying property.
Others, now exposed to the risks of the housing markets, may have chosen to rent rather than buy to avoid the dealing with issues such as falling home values or the costs of relocation, according to the study.