The 2017 University of Southern California Casden Economics Forecast predicts that rising employment combined with an ongoing lull in homeownership will again drive rent increases over the next two years throughout the region.
The forecast, which is produced annually by the USC Lusk Center for Real Estate in partnership with Beacon Economics, found that by 2019, average monthly rents are expected to increase over 2017 levels by $136 in Los Angeles County, $149 in Orange County, $124 in the Inland Empire, $121 in San Diego County, and $98 in Ventura County.
USC Lusk Center’s Richard Green, who co-authored this year’s forecast, says, “It’s certainly no surprise to anyone – developers, landlords, tenants and elected officials – that available units are becoming more scarce and more expensive in Southern California. As employment and wages improve in the region, homeownership remains stagnant. This combination is a key stressor in the availability and cost of apartments, and has an increasing impact on the local economy.”
Regional outlooks:
Los Angeles County
2017 Levels: $2,237 average rent; 3.94% vacancy rate
2019 Forecast: $2,373 average rent; 3.91% vacancy rate
Orange County
2017 Levels: $2,008 average rent; 3.87% vacancy rate
2019 Forecast: $2,157 average rent; 3.50% vacancy rate
San Diego County
2017 Levels: $1,927 average rent; 3.92% vacancy rate
2019 Forecast: $2,048 average rent; 4.03% vacancy rate
Ventura County
2017 Levels: $1,956 average rent; 3.78% vacancy rate
2019 Forecast: $2,054 average rent; 3.93% vacancy rate
Inland Empire
2017 Levels: $1,449 average rent; 4.18% vacancy rate
2019 Forecast: $1,573 average rent; 3.8% vacancy rate
A link to the original article can be found here.