Rents expected to decrease
Los Angeles Daily News
By Gregory J. Wilcox
...Vacancy rates will also drop but that won't slow rent decreases, said the Casden Multifamily Market Forecast compiled for USC.
The forecast said that between the fourth quarter of 2009 and fourth quarter of 2011, average rents will drop by 5.2 percent. "Overall, Southern California will not see sustained increases in rents until the greater economic health of the region improves," said Tracey Seslen, co-author of the forecast. The apartment sector is still reeling from the 225,000 jobs lost in the county during the brutal recession, she said.
The future health of the Southern California apartment market continues to be shaped by jobs, housing prices, the "shadow" market of rental homes and condos, and new construction, Seslen explained. Housing prices have been rising and unemployment in the county is currently at 12.3 percent and many luxury condos that didn't sell during the recession have been turned into rental units...