LOS ANGELES—The widening gap between wages andapartment rents as rent growth continues to outpace wage growthis one of the more interesting trends to watch in 2016,Avison Young principal Jay Maddoxtells GlobeSt.com. As he prepares to speak at the SouthernCalifornia Development Forum's"Annual RealEstate and Economic Forecast" event on January 12in L.A., an event moderated by Larry Kosmont ofthe Kosmont Cos. and covering California realestate and business opportunities in 2016, we spoke exclusivelywith Maddox about Southern California real estate trends for thisyear.
GlobeSt.com: In your opinion, what will be the twomost interesting Southern California trends to watch in2016?
Maddox: There is a widening gapbetween wages and apartment rents as rent growth continues tooutpace wage growth. In L.A. and Orange County metro areas, nearly60% of renters are spending 30% or more of their income on rent,and in some cases as much as 50%. Although 15% more apartment unitsare projected to be delivered in 2016 in Southern California ascompared to 2015, demand should continue to outpace new supply,resulting in a continued housing shortage and astrong market for developers.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
