Apartment rents in Southern California are expected to increase as much as 9 percent in the next two years in a housing market lacking vacancies, according to a university study.
The study, conducted by the Lusk Center for Real Estate at the University of Southern Californiacolor>., blames the projected increase on the region's strong economy, population growth and shortage of housing units. It focused on Los Angeles, Orange, Riverside and San Bernardino counties.
"I think people know what the solution is. We have to add more units," said Raphael Bostic, the study's director.color>
Last year's average monthly rent of $1,300 in Los Angeles County is expected to increase about 7 percent, to $1,400 in 2005, according to the USC forecast.
In Orange County, rents averaging $1,260 are expected to increase 9 percent next year.
In two years, rents in the Inland Empire are going to climb 8.5 percent from an average of $900, the study said.
Bostic said cities need to build more higher density projects, including apartments and condominiums, but noted those residential developments are often frowned upon by neighbors.
In some parts of Southern California, fewer apartments are being built, and fewer are available to rent.
In 1986, for example, builders pulled permits for 52,969 units in Los Angeles County. Last year, permits were pulled for 11,096 units. Meanwhile, vacancy rates remain at about 4 percent in Los Angeles County and the Inland Empire.