Apartment rental prices in Los Angeles are expected to rise over 8% over the next two years, according to a study conducted by USC’s Lusk Center for Real Estate. The study estimates that rent prices will increase 8.2% in Los Angeles County by mid-2016, at an average of $1,856 a month.
It’s worse in Orange County, where the estimate projects an 8.6% rise with an average price of $1,806, and even worse in the Inland Empire, with a 9.9% jump and an average rental price of $1,246 a month.
Rental prices had grown roughly 3% to 4% clip in the last 12 months, according to the Los Angeles Times. Despite the price climb in rental prices, vacancy rates are estimated to drop because more apartment buildings are opening.
Richard Green, who directs the Lusk Center, pointed out, “Though the economy and employment have improved, renters’ incomes are stagnant. So while net absorption and occupancy rates are moving in the right direction, affordability continues to worsen.”