The average rent on an apartment in much of Southern California will rise by at least $100 over the next two years, University of Southern California researchers predict.
The projection, part of the USC Casden Multifamily Forecast, is based off an analysis of rents, housing supply and population growth in Los Angeles, Orange, San Bernardino, Riverside and San Diego counties, reports NBC4 media partner KPCC.
Because of the low housing supply in Southern California, landlords are fetching high rents on their apartment units, the researchers found. While construction permits have rebounded, they're still falling short of the housing demand in SoCal.
"Though multifamily construction permits are back to pre-recession levels and have provided some relief, population and employment growth are driving up demand faster than new inventory can hit the market," said Raphael Bostic, interim director of the USC Lusk Center for Real Estate, which released the Multifamily Forecast.
By 2018, the average rent in LA County will rise to $1416, up from $1307 in 2015, the researchers found.
While more renters are becoming homeowners around the nation, renters in California aren't able to buy homes as easily.
Read more at KPCC.
A link to the original article can be found here.