LOS ANGELES (CBSLA) — There’s no end in sight for Southern California’s housing crisis after a new study found that rent increases will continue into 2019.
The new report from USC and Beacon Economics shows the robust economy and accompanying employment numbers, combined with a lull in homeownership, will force monthly rents to increase over 2017 levels by as much as $149 in Orange County and $136 in Los Angeles County.
“It’s certainly no surprise to anyone – developers, landlords, tenants and elected officials – that available units are becoming more scarce and more expensive in Southern California,” USC Lusk Center Director Richard Green said in a statement. “As employment and wages improve in the region, homeownership remains stagnant. This combination is a key stressor in the availability and cost of apartments and has an increasing impact on the local economy.”
Surrounding counties won’t escape the pain on the first of the month either – average monthly rents are expected to go up $124 in the Inland Empire, $121 in San Diego County, and $98 in Ventura County.
The report concludes that rent growth is outpacing income growth at a level that is not sustainable and will continue to negatively impact tenants and employers in the five regions included in the study.