Los AngelesApartment rentgrowth in Southern California is continuing to slow. According to anew report from Yardi's Rent Café, only LosAngeles and San Diego had rent growth above 1% month-over-monthduring peak rental season. Los Angeles rents increased to $2,516 inJuly, an extra $112 added to the average rent since last year, andSan Diego rents hit $2,216, an increase of $52.

"From June to July, rent in Southern California didn't increasesignificantly. It only experienced a 2% increase in the overallaverage rent for the region, and compared to July last year, itincreased by 2.6%. However, this is not all that surprising giventhe fact that smaller, less pricey cities saw the highest rentgrowth. And this is not only seen in Southern California, but alsoat the national level," Sanziana Bona, researchanalyst at Rent Café, tells GlobeSt.com.

While most cities had flat or nominal rent growth, Los Angelesrents increased 1.3% and San Diego led the Southern Californiamarket with 1.9% rent growth. Despite leading the SouthernCalifornia region, these are still considered nominal rentincreases. "Los Angeles and San Diego will continue to experiencerent growth in the future, because even though the new unitsdelivered until now have made an impact, supply still has to catchup with demand," says Bona. "Looking at the cities'business-friendly environments and the education-rich labor force,more companies are setting offices in these locations. This has notonly had an impact on the local economy, but due to the largenumber of individuals drawn either to remain in or migrate to thesecities, it has put pressure on the multifamily rental market as thesupply of multifamily units still lags in large cities, not beingable to keep up with the high demand."

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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.