Study: Apartment Rents To Decline In Los Angeles County
LOS ANGELES (CBS) — A study has concluded that average apartment rents in Los Angeles County are expected to decline by 3.2 percent by the end of next year.
The Casden Multifamily Forecast, which was released by the Lusk Center for Real Estate at the University of Southern California, says average rents increased by 0.9 percent last year to $1,501, while occupancy rates increased 0.2 percent to 94.1 percent.
In Orange County, rents averaged $1,475 last year, up 0.8 percent from 2009. The occupancy rate increased 1.2 percent to 94.9 percent.
Both rents and vacancy rates are expected to remain flat through next year, according to the study.
"While we are no longer hemorrhaging jobs, home affordability remains bleak in some areas, both of which bode well for the multifamily market," Richard Green, director of the USC Lusk Center and co-author of the Casden Forecast, said.
"However, it is unlikely that rents will rise until the greater economic health of the region improves and some of the excess inventory in the housing market disappears," he said.
Los Angeles and Orange counties are bucking trends since the report says rent costs are rising elsewhere in the country.
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