L.A. Third in Nation for Apartment Rent Growth

Los Angeles

Los Angeles rent growth was the third strongest in the nation, according to a new report from Yardi Rent Café. Rents in Los Angeles grew 6.6% year-over-year in 2018, up to an average of $2,461 per month. Most submarkets throughout the region saw rental rate gains, with Lancaster and Santa Clarita among the Los Angeles submarkets to see the highest rent growth. Huntington and Marina del Rey also recorded strong rental rate gains for the year.

A shortage in apartment supply drove the gains this year. “Compared to last year, Metro Los Angeles saw a 23% decline in the number of units projected to be completed in 2018. We estimated that approximately 11,400 units would enter the market by the end of the year, Adrian Rosenberg at Yardi’s Rent Café tells GlobeSt.com. “Although the City of Los Angeles accounts for a large chunk of the new apartments expected to be completed, approximately 4,600, the supply here is down by 14% year-over-year. Along with an ever-increasing demand for rentals and a high occupancy rate of 96.7%, the low supply made room for apartment prices to swell even more.”