But until recently, renters had fewer options. The mad dash to build for-sale condo units depleted downtown's rental stock as developers turned existing apartment buildings into so-called condo conversions. But that has started to change as more rental units are slated for construction in and around downtown, said Delores Conway, a USC professor and author of an annual report on Southern California's multifamily housing market. From March 2005 to March 2006, more than 1,200 new apartment units became available, Conway said. After a brief drop in the downtown occupancy rate to 83% this year, as of June, downtown apartment buildings are 98% filled, Conway said. "There was a dip but it was reabsorbed very quickly," she said. "I'm sure developers are seeing this … and possibly rethinking their positions." The average downtown rent is about $2,000 a month, according to Conway's research.
