Renting an apartment in Orange County will be getting more expensive over the next two years, with a USC Casden Economics Forecast predicting continuing rent increases across Orange and Los Angeles counties.
According to the report, Los Angeles is projected to have an average rent increase of $100. Orange County, on the other hand, is predicted is have an average rent increase of $184.
The annual report from USC Lusk Center for Real Estate analyzes current market conditions and makes two-year projections for multifamily rents and vacancies in SoCal.
Director of the Lusk Center Richard Green said in a statement that the forecast was somewhat uncertain due to fluctuations in inflation, rising interest rates and relocations.
"The Fed has increased interest rates at a frequency not seen since the end of the Reagan administration," Green said in a statement.
"While it might slow inflation, rapid rate hikes could have a different impact on housing in Southern California. High interest can be barrier to new housing construction or a renter's decision to become a homeowner. Both add stress to the rental market and drive up prices."
The forecast projects low vacancy rates and monthly rents increasing at least $100 over two years in both Orange and Los Angeles counties. The report noted that construction of housing in each market is near the lowest levels in the country on a per capita basis.
According to the report, Orange County holds one of the nation's highest household incomes and only 3 percent unemployment rate. Over the next two years, Orange County's average rent is predicted to rise from the current $2,597 to 2,781, with the vacancy rate rising from 3.03 percent to 4.36 percent.
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