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MSN: Rent Hikes On The Horizon In Orange County, Per USC Report

November 10, 2022

Renting an apartment in Orange County will be getting more expensive over the next two years, with a USC Casden Economics Forecast predicting continuing rent increases across Orange and Los Angeles counties.

According to the report, Los Angeles is projected to have an average rent increase of $100. Orange County, on the other hand, is predicted is have an average rent increase of $184.

The annual report from USC Lusk Center for Real Estate analyzes current market conditions and makes two-year projections for multifamily rents and vacancies in SoCal.

Director of the Lusk Center Richard Green said in a statement that the forecast was somewhat uncertain due to fluctuations in inflation, rising interest rates and relocations.

"The Fed has increased interest rates at a frequency not seen since the end of the Reagan administration," Green said in a statement.

"While it might slow inflation, rapid rate hikes could have a different impact on housing in Southern California. High interest can be barrier to new housing construction or a renter's decision to become a homeowner. Both add stress to the rental market and drive up prices."

The forecast projects low vacancy rates and monthly rents increasing at least $100 over two years in both Orange and Los Angeles counties. The report noted that construction of housing in each market is near the lowest levels in the country on a per capita basis.

According to the report, Orange County holds one of the nation's highest household incomes and only 3 percent unemployment rate. Over the next two years, Orange County's average rent is predicted to rise from the current $2,597 to 2,781, with the vacancy rate rising from 3.03 percent to 4.36 percent.

The original story can be found here.