Los Angeles Rents Increase Again
Zumper, a popular rental listing service used by many people looking for a home, recently reported the average rents for 2016.
1 bedroom rentals have increased 5.2% over the last year to $2,030 per month. 2 bedroom rentals have increased 6.8% to $2,990.
Can this torrid pace continue? Probably not, as average wage growth over the same period was only about 3%. Rental rates continue to grow much faster than incomes. At some point, it will just get too expensive to live in Los Angeles.
On the other hand, Los Angeles is a very desirable place to live with a healthy job market, nice weather and lots to do and see. Even so, incomes will need to increase faster or rentals slower for the demand to continue.
What have you experienced with demand for your vacancies and the rents you are receiving? Please comment below.