Despite a significant increase in the construction of multifamily housing, USC researchers project that Southern California rents will continue to rise. A forecast released Tuesday predicts that average rent on a Southern California apartment will rise by at least $100 over the next two years, according to KPCC.
No neighborhood is safe from the rising costs of housing in Southern California.
That's the new finding in the new 2016 Casden Multifamily Forecast reportby USC's Lusk Center for Real Estate.
"Historically there have been pockets of affordability," says co-author Raphael Bostic, "so that there were places people could go where they weren't going to have to pay rents that would be affordable for higher income people but not everybody else."
Strong demand for apartments are expected to continue to drive rental rates higher across Southern California over the next two years, despite a substantial increase in multifamily construction.
Despite construction permits being issued for more than 38,000 new units across the four regional markets surveyed – the highest since before the recession – vacancy rates are projected to continue their gradual decline through 2018, according to the latest USC Casden Multifamily Forecast.
Rent in San Diego County is expected to rise faster over the next two years than the rest of Southern California, said a study released Tuesday.
Researchers found a lack of new construction, mixed with employment and population growth, mean San Diego’s rent should increase by $155 a month by 2018.
The study from the University of Southern California’s real estate school, and prepared by Los Angeles-based Beacon Economics, said San Diego’s rent increases will outpace those in Orange County, Los Angeles County and the Inland Empire.
A new rent forecast released Tuesday predicts Southern California tenants will face continued rent hikes and falling vacancy rates through 2018.
Orange County apartment rents, already the highest in the region, are forecast to rise by at least $149 a month by the end of 2018, up 9.4 percent from 2015 levels, the USC Casden Multifamily Forecast predicts.
Only San Diego County will see a bigger increase in apartment rents during the next 21/2 years. Rents there are projected to grow by $155 a month, or 10.9 percent, the forecast said.
Apartment-dwellers in San Diego County can look forward to the highest projected rent increases in Southern California over the next two years, thanks to growing demand and low vacancy rates, according to a report released Tuesday.
The study prepared by Beacon Economics for the USC Lusk Center for Real Estate said average rents are expected to rise by $155 -- to $1,577 -- over the next two years in San Diego County.
Elsewhere in Southern California, rents are projected to climb by $109 in Los Angeles County, $149 in Orange County and $84 in the Inland Empire.
Despite a substantial increase in multifamily construction, the2016 USC Casden Multifamily Forecast finds that higher demand for apartments across Southern California will keep vacancies low and drive significant rent increases over the next two years.
The cost of living in Southern California is going to soar and no neighborhood is safe from rising rents and home prices.
"You have two options: either rents go up or we build more units," says economist Chris Thornberg, co-author of a new report from USC's Lusk Center for Real Estate.
He argues that policies and movements against dense developments will only exacerbate California's housing crisis.
Santa Monica is already part of the most expensive rental market in the country, and rents are expected to continue rising in the Los Angeles area through 2018, according to two studies released this week.
The 2016 USC Casden Multifamily Forecast, which was released to the public Thursday, found that despite housing construction back at pre-recession levels, demand for apartments throughout the state will keep vacancies low and rents on the upswing.
The price of rent in Southern California is projected to continue its upward climb over the next two years, as demand for multifamily units increases and vacancy rates are reduced, according to a study released by the University of Southern California Multifamily Forecast earlier this week.