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It's probably one of the biggest cultural shocks for people relocating to Los Angeles for the very first time: the high cost of living, specifically renting. While most natives don't bat a single eyelash at $1200 studio apartments or $2500 two-bedrooms, the recently arrived are dumbfounded by exorbitant rates for totally mundane, even run-down apartments (Westwood Village, anyone?).
But since the times, they are a changin', rent prices in L.A. might be the next to feel the effects of these brave new economically challenged times. Reports the LA Times:
After rising for several years, rents in the Los Angeles area are declining because of the economic recession and depressed home prices, researchers, real estate agents and property managers say.Apartments in normally pricey neighborhoods like Santa Monica are seeing decreases of $100, $200, or even $500 per month, and things are only expected to get worse -- for landlords, that is: "The recession will probably pull rents even lower".The lower local rents match a national trend, according to a report released Wednesday showing apartment rents fell in 54 out of 79 U.S. metropolitan areas in the fourth quarter of 2008. Softening rents add another obstacle to a housing market recovery, economists say, because tenants with low rent payments feel less urgency to buy a home.
This may all be beside the point for those of us dealing with the annual New Year rent increase (my own North Hollywood apartment just got a $100 hike, with our landlord assuring us that "many other tenants are paying much more!", whatever dude). But for those of you looking for a change, an upgrade to a trendier neighborhood, or even a move to more economic locales like the Valley or K-Town, 2009 may be your year to seek out new digs at newly affordable prices. Now if only moving wasn't the most tedious and exhausting process known to mankind....
Photo of the classic Gaylord Apartments by LA Wad via Flickr
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Now if only a landlord will send you a notice annually decreasing out rent :)
California in general is overpriced. unless its in the hills, on a gold course or next to the beach apartments should not cost an arm and a leg. Too many landlords have been getting away with hiking up rent and in return you are stuck having to settle in some old 1970's outdated piece of crap.
Overpriced in California? yes. So much money for crappy carpeted apartments that should be nice hard wood floors. boo
This is, of course, because the incredibly huge rise in rents during the last 8 years or so was an artificial phenomenon brought about by the unregulated housing sales market, and the relatively small number of rich (and aspiring to be rich) fuckfaces flipping and flipping and flipping houses so that 1 room houses in the middle of a gang war sold for 600 grand. Also, a large number of landlords who didn't get in on the fliping decided to jack up their rents to insane levels just because they could get away with it, due to the fact that the flipper fuckfaces had jacked their own rents up.
Now, with the job market the way it is and the economy in a cancer spiral, no one wants to leave the apartment they have (and can kind of maybe afford) just to pay even more money for a probably smaller apartment. Sooo, all of the landlords who only raised their rents because they could get away with it but otherwise didn't have a legitimate financial imperative to do so are being forced to lower their rents significantly in order to attract renters. Silverlake and Echo Park are filled with surprising bargains right now as a result.
What I find HI-larious however, is the fact that the idiots who got into flipping right before the bottom fell out of the market are now stuck with insane mortgages they simply cannot afford. Serves them right of course. But thanks to their super high mortgages, landlords with overpriced rental properties are prevented for obvious financial reasons from reducing their rents to reasonable levels. So they're completely D-P'd, since they can't afford their mortgages and they can't get anyone to move in.
My former landlord in Highland park, a really nice guy who I personally like an awful lot, is one of the people in this kind of mess - when we lived there, we paid 2000 a month for a relatively tiny two bedroom place. We've since moved to Boyle Heights, where for the exact same rent we're getting a place thrice the size. Meanwhile, the former landlord is asking for 2200 a month for the same little place we paid 2000. 3 guesses whether or not he's found anyone willing to rent it.
I know! When I see the same crap for months on end on Craigs List I just want to yell at the landlord, "you're asking for too much! Duh!!!"
Another tragedy that I've observed as part of the flipping trend (from an aesthetic stand point) is that many of the new landlords do not give a shit whatsoever if the "brand new kitchen/bathroom!!" matches the rest of the place. So you have these really awesome 1 bedroom 1920's bungalows where everything's perfect and then they throw in some truly hideous bathroom fixtures, sliding vinyl windows, "granite" counter tops and the - shudder - brand new cabinet set from Sears. You know, the "natural wood" type. Ughhh.
I have been looking to move lately and tearing my hair out over this phenomenon!
Holy crap you're so correct. We're having that exact problem in our current house.
DP? D!ck Pronged? Double Penetrated? Do tell.
You got it Dingo - Double Penetrated. Though dick pronged has such a nice ring to it. I think you just coined a new expression, one I intend to steal from you and put to good use in a future piece...
Ross: Steal away!
I've noticed many apartments for rent in my neighborhood (Beverly Hills, S. Doheny area) in the past 6 months. The landlords can't fill them. My own building has two vacant two bedroom apartments and one vacant one bedroom apartment. They've been empty since October! My landlord is still asking $1450 for the one bedroom, I don't know how much the others are. I'm paying $1370 for my comparable one bedroom in the same building. It was $1250 when I moved in 3 years ago. You can see why there's attrition and why he can't fill the apartments. I'm just waiting a little longer to see if the rates will go down further before I move. Even if the economy magically picked up overnight, I don't have much to lose.
I guess this is some come-up-pence for some greedy rental owners.
im currently looking at places in downtown...most are taking out the security deposit and offering first two months free...but still i feel like if i wait a few months it'll get even bettr for me. b/c from what i hear its not getting any easier to fill those homes
$100 increase seems steep... are you not in a Rent Stabilized building??
If it's a 2 or 3 bedroom, I can imagine $100 being 5% of the rent, which is what they're allowed to raise it per year, I believe.
"...are you not in a Rent Stabilized building??"
That's what I'm wondering about. How much is the Rent Stabilization Board going to allow rent controlled apts to go up this year? It changes from year to year according to the inflation index. If the inflation index goes down, does the price on rent controlled apts go down?
Anyone know?
Last year, the increase for rent controlled buildings was 3 percent. It cannot go lower than that. This year I am budgeting for a 5 percent increase.
Buildings constructed after 1978 are not under rent stabilization laws. So that may be why a $100 increase is valid.
I don't think that the city can force a rental decrease.
You all might want to look at this. This is the rent stabilization ordnance for Los Angeles (city) rent.
http://www.nmhc.org/Content/ServeFile.cfm?FileID=5879
Pay particular attention to Sec 151.04, 151.05, and 151.06. The current rate of increase is four (4) percent, this does not include an additional 1% each for gas and electric if those two items are included in the rent. Additional (not replacement) tenants may spark a 10% increase. If you are replacing a roommate (hide the pick and shovel) this 10% does not apply. We are talking about additional, not replacement.
See it all here.
In my neighborhood, Los Feliz, almost every block has a for rent sign it seems - times are really bad and the only good thing to come out of this is if rents came down to a more logical level because they really are inflated. It's about supply and demand and right now it's all supply.
While rents are high in many areas, I think they are still generally significantly lower than in NYC, Manhattan. Someone mentioned $1450 for a one bedroom in Beverly Hills...that same one bedroom in a nice area of Manhattan would probably be twice as much.
Also I think it's hard for people that haven't their buildings forever because they have a big mortgage and rent control means they can barely raise the rents of people that have lived there along time.
This will probably mean foreclosures for many of these owners coming soon. It's easy to think "Landlords are greedy" , but many of them barely make profit after mortgage and ALL other expenses.
are my allergies spontaneously acting up, or did someone just bring a strawman into this conversation?
" It's easy to think "Landlords are greedy" , but many of them barely make profit after mortgage and ALL other expenses."
Boo fucking hoo.
Most of the landlords I've dealt with over the years have owned the property for eons, don't want to fix shit, and would throw your ass out in the street in a skinny minute if they didn't have to obey rent control and renter's rights protections.
I def. agree with you, but I just want to restate that bophisto's comment was a total strawman, since literally no one made the arguments he is so bravely refuting.
I'm not saying he's a troll, but the three billy goats gruff are standing over in the corner, doing warm up exercises just in case.
Also, what you say here is true.
"I'm not saying he's a troll..."
That or a landlord crying his eyes out because he has to obey the law.
Prop 98 anyone?