ACCORDING TO THE LOS ANGELES-BASED University of Southern California Lusk Center for Real Estate's Casden Real Estate Economics Forecast, average asking rents and occupancy rates in Southern California's multifamily markets will continue to improve at a steady pace with average rent increases ranging from 3.5 percent to almost 6 percent in 2005.
"The new supply of apartments has not kept up with demand from newcomers attracted to jobs in our diverse economy and the Southern California lifestyle," said Delores Conway, director of the Casden Forecastcolor>. "Apartment occupancies are at all-time highs in Los Angeles, Orange, Riverside and San Bernardino counties because of a steady stream of young professionals and Latin and Asian immigrants who cannot afford the average home, along with relocated executives who choose not to get locked into a mortgage," she said. According to Conway, Southern California's steadily growing and diversified economy sets the stage for increased job formation and more demand for apartments in the coming year.