Rent Growth Strongest in Aging Apartment Stock

The rapidly aging housing stock in Los Angeles is contributing to affordability issues, according to research from Apartment List. The supply of housing units less than 10 years old in Los Angeles is currently at an all-time low, and older properties are seeing the biggest increase in rental rates. Since 2000, rents for apartment units built before 1980 have grown 39%. In general, the older the building, the more rapidly rents are rising, according to the report.

“Because of this lack of new construction, demand has remained high for older units, and also increased the incentives for remodeling older units to command higher rents,” Chris Salviati, housing economist at Apartment List, tells GlobeSt.com. “As a result, the median rent for units built prior to 1980 grew by 39% from 2000-2016, significantly faster than the 26% growth in the median for units built in the 1990s. Despite this increased growth, older units are still somewhat more affordable—as of 2016, the median rent for units built prior to 1960 is 14.2% lower than the median for units built in the 1990s.”