Last week saw the release of the latest USC Casden Multifamily Forecast report, which predicts that monthly rents will continue to rise for at least two more years in Southern California despite new construction. According to USC Lusk Center for Real Estate Director Richard Green, the region's market is being fueled by rising home prices. He states, "Despite marked improvements in employment and the economy, the rapid increase in home prices and interest rates are pricing first-time home buyers out of the local market." Researchers tracked four total areas -- the Inland Empire and Los Angeles, Orange, and San Diego counties. In the year ended June 30, nearly 6,700 new rental units were erected. Across L.A. County, monthly rents rose 2.9 percent to an average of $1,435. Among the four areas, only Orange County has a higher average monthly rent at $1,572. The study further shows that Santa Monica was the submarket with the highest rent in the region at $2,328 a month. On the flipside, Victorville in San Bernardino County had the lowest rent at $755. In other findings, San Diego County registered the lowest apartment vacancy rate at 2.3 percent.
