October Rent Report: Los Angeles Sees Break in Rising Rental Costs
Los Angeles rent or buy a house: Despite ongoing predictions of California’s rental prices continuing to climb, many of the state’s largest cities are seeing evidence of rental price slides.
In a new report, apartment listing website ABODO found that, though rents in some California cities are still rising — including Riverside, which saw a 14% hike in October, following a 6% rise in September — other major cities are in their second consecutive month of decline.
Los Angeles rent or buy a house
San Jose, for example, saw its average rent for a 1-bedroom drop 12% in September and another 7% in October, Los Angeles rent fell 8% in September and 4% in October, Long Beach 7% in September and 9% in October, and San Francisco saw a 6% decrease in both months. Nationally, one of the largest October rent declines was in another California metro: Sacramento rent fell by 10%, down to $1,007. The only greater drop outside of the state was seen in El Paso, where a one-bedroom now costs $731, down 12%, and Columbus, OH, tied with Sacramento’s 10% drop.
So what’s behind this trend?
The Wall Street Journal reports that drops like these signify a national downturn in rental prices. “San Francisco and New York are leading the way in the downturn,” Ken Rosen, chairman of the Fisher Center of Real Estate and Urban Economics at UC Berkeley, told the Journal. In October, New York also saw a rent drop of 3%.
Los Angeles rent or buy a house
California home prices, meanwhile, are continuing to rise. According to the Los Angeles Times, median home prices in July were up more than 6% from 2015 — up 8.5% in LA, compared with a 5.4% jump in San Diego — while sales are slightly slower. Home prices are expected to level off, but demand will continue to be high.
For a more in-depth look at October rent around the country, check out ABODO’s National Rent Report.
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