The affordability crisis isimpacting the Los Angeles market. According to a recent report fromApartment List, 35% of renters in Los Angeles arelooking to move to more affordable markets, and the trend is—atleast partially—driving a slowdown in rent growth in the city.

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"L.A.'s year-over-year rent growth currently stands at arelatively flat 0.4%, trailing both the national average and thecity's own recent history," Christopher Salviati,housing economist at Apartment List, tells GlobeSt.com. "To theextent that outward migration trends are indicative of coolingdemand in the area's rental market, this is likely a contributingfactor in the slowdown in rent growth. That said, this is just onepiece of the picture. The L.A. metro has also seen a boost in newmultifamily construction in recent years, and this new inventory isalso playing a role."

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While current Los Angeles residents are leaving the market, newrenters continue to come to Los Angeles. However, population growthin Los Angeles has also plateaued, meaning those moving to themarket are merely offsetting the group leaving the market. "Amongall 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 largestmetros, L.A. ranks #12 on this metric. L.A. is still attractingrenters from elsewhere but is not necessarily a destination thatrenters are flocking to," says Salviati. "According to data fromthe Census Bureau's population estimates, the population of theL.A. metro dipped slightly from 13.30M in 2017 to 13.29M in 2018,the most recent year of data currently available. This data showsthe impact that a lack of affordability is having on the region'shousing market."

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

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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.