X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Apartment rents have continued to rise this year in Los Angeles. According to a report from Apartment List, apartment rents in the market have increased for five consecutive months, up 1.9% over the same period in 2017. The month-to-month increases, however, have been nominal and the momentum is slowing. In May, apartment rents have increased more than 1% but despite the slowed momentum, the average rent for a two-bedroom apartment is $1,750. By comparison, the national average for a two-bedroom apartment is $1,170.

“The drivers behind month-to-month changes can be a bit tough to pin down,” Chris Salviati, housing economist at Apartment List, tells GlobeSt.com. “I know that L.A. has a fair amount of new apartment inventory in the pipeline, but I’m not sure about the specific timing of when these new units are slated to come online. A spike in new inventory could be one potential culprit for the slight flattening in rent growth over the past couple months.”

Compared to rent growth in the two preceding years, rental rate growth has slowed dramatically. With only 1.9% growth in the first five months, Salviati says that is unlikely that rent growth will match the growth in 2017 and 2016. “Year-over-year growth for L.A. was 4.6% at this time last year, 4.5% at this time in 2016, and 5.5% at this time in 2015,” he says. “In order to reach these levels, year-over-year growth would need to increase between two times and three times. I don’t see any reason to expect such a sharp spike in rents in the coming months.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

More from this author

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.