SoCal Rents Will Rise, Casden Forecast Says Southern California's strong economy, continued immigration and a shortage of new units will drive up the region's apartment rents an average 6 percent to 8 percent over the next two years, according to the Casden Real Estate Economics Forecast released by the University of Southern California Lusk Center for Real Estate. In 2003, monthly rents averaged $1,300 in Los Angeles County, $1,260 in Orange County and $900 in Riverside and San Bernardino counties, the Lusk Center said. "We'll continue to see strong demand from tenants moving into Southern California, especially from young singles wanting efficiency units and larger Latino immigrant families needing three-bedroom apartments," said Raphael Bostic, director of the Casden Forecast. "The big problem is that there are just too few units available for people to move into right now. Cities need to be more aggressive about allowing higher density projects in urban areas, but unfortunately, neighbors often reject this approach." The Casden Forecast analyzes apartment transactions, new building permits, leasing activity and employment data to produce forecasts of rent and vacancy levels in Los Angeles County, Orange County and the Inland Empire.
March 31, 2004