The affordability crisis is impacting the Los Angeles market. According to a recent report from Apartment List, 35% of renters in Los Angeles are looking to move to more affordable markets, and the trend is—at least partially—driving a slowdown in rent growth in the city.

"L.A.'s year-over-year rent growth currently stands at a relatively flat 0.4%, trailing both the national average and the city's own recent history," Christopher Salviati, housing economist at Apartment List, tells GlobeSt.com. "To the extent that outward migration trends are indicative of cooling demand in the area's rental market, this is likely a contributing factor in the slowdown in rent growth. That said, this is just one piece of the picture. The L.A. metro has also seen a boost in new multifamily construction in recent years, and this new inventory is also playing a role."

While current Los Angeles residents are leaving the market, new renters continue to come to Los Angeles. However, population growth in Los Angeles has also plateaued, meaning those moving to the market are merely offsetting the group leaving the market. "Among all users searching for a place to live in the L.A. metro, 33.9% are searching from outside the metro. Among the nation's 25 largest metros, L.A. ranks #12 on this metric. L.A. is still attracting renters from elsewhere but is not necessarily a destination that renters are flocking to," says Salviati. "According to data from the Census Bureau's population estimates, the population of the L.A. metro dipped slightly from 13.30M in 2017 to 13.29M in 2018, the most recent year of data currently available. This data shows the impact that a lack of affordability is having on the region's housing market."

Los Angeles isn't the only California market suffering from outward migration. San Diego and San Francisco are also seeing significant outward migration. "Among users currently living in San Diego, 21.2% are searching outside the metro, which is actually the lowest rate among the nation's 25 larges metros," says Salviati. "In contrast to L.A., over two-thirds of San Diego residents who are apartment hunting want to stay in the area. Meanwhile, in San Francisco, 37.7% of apartment hunters are looking to leave, a higher rate than what we observe in L.A. However, among those renters who are looking to leave San Francisco, we see many of them moving to other parts of the Bay Area, in contrast to the L.A. renters who are leaving the state."