In 2019, apartment rents inLos Angeles plateaued after several years of substantial growth.The trend continued through the end of the year with a modest .4%increase in apartment rents overall, according to research fromApartment List. While rents have stalled, averagelease rates in Los Angeles for a two-bedroom apartment still exceedthe national average at $1,759 per month compared to $1,192 permonth.

"Year-over-year rent growth in L.A. is currently 0.4%, trailingthe national average of 1.4% and representing a notable cool downin rent growth compared to recent years," ChristopherSalviati, housing economist at Apartment List, tellsGlobeSt.com. "This cool down is likely attributable in large partto new construction. The number of new multi-family housing unitspermitted in the L.A. metro surpassed its pre-recession peak in2015, and despite slowing down a bit since then, it has maintaineda robust pace. As these units hit the market, the new supply helpsto ease constraints on a tight housing market."

In addition to the new supply coming to the market, Californiaand Los Angeles specifically is suffering from an affordabilitycrisis, which has driven many residents out of the state. "Highhousing costs throughout California have made the state lessattractive to folks from other parts of the country," saysSalviati. "The state's population growth has slowed to its lowestlevel in decades, and this loosening on the demand side is likelyalso contributing to lowered rent growth."