What's Up LA County? 'Cause It's Not Gonna Be the Rent!
If you are a renter, and looking to move in the coming months, some encouraging news: Rents between now and the end of next year are expected to decline by an estimate 3.2 percent, according to the 2011 USC Casden Multifamily Forecast, a report released today by the school's Lusk Center.Here's the Casden's breakdown of key LA County info:
* In 2010, same-store rent grew 1.2 percent, compared to 6 percent decrease in 2009 and 3.8 percent decrease in 2008. Average rents grew 0.9 percent to $1,501
* 2010 occupancy rates were up 0.2 percentage points to 94.1 percent
* 2,500 jobs were created in 2010 with 25,000-35,000 more expected in 2011
* By the end of 2012, vacancy rates are expected to fall less than 0.5 percentage points, while rents are expected to decline 3.2 percent
Factors contributing to the declining cost of renting include "bleak" home affordability for potential buyers, "excess inventory in the housing market," and the region's poor "economic health," according to the report's co-author, explains CBS2.
Nationwide, however, the market has begun to shift back to being favorable to landlords, as rents are stabilizing, and there are fewer vacancies. Los Angeles, as well as Orange County, are still lagging in catching up with that trend, however the issue of home ownership being unattainable for many, particularly young people, remains consistent around the country, according to Reuters.