A new study finds that the rental market is starting to cool
Rents in Los Angeles appear to be stabilizing after peaking last August. According to the latest report from Rent.com, rents in LA, Orange County, and Long Beach are up 1.65 percent year over year -- a lower price point than what researchers expected.
Experts say we are now getting back into the normal pre-pandemic seasonal changes, where rents rise in the summer and then fall off once the school year is underway.
"We normally would expect somewhere between 2 and 4 percent (increase), but you know, rents do continue to grow, but at a much smaller rate," said John Leckie Rent.com researcher.
And what's causing prices to stabilize now? It's said to be a decreased demand that could be fueled by a weaker housing market, with record high interest rates. Leckie explained the price stabilization as a decrease in demand with fewer people moving, just sticking with what they already have.
Rents in Los Angeles are currently on the high side, as the peak hit from 2020 to 2022 where prices rose more than 14 percent, equating to an estimated $450 per month increase.
Anna Booher moved to Los Angeles from Illinois 10 years ago and says she's just learned to live with high rents. "It was overwhelming, but I accepted it because I love living here."
Leckie advises that renters take steps to find the best deals. He says not to be afraid to negotiate and to price check nearby rentals so expectations are realistic. And now is the season to apartment shop, the fall and winter, when schools are in session and families tend to stay put.
The most recent price report from Rent.com lists the average rent for apartments in Los Angeles, from a studio to a two-bedroom, between $2,421 and $3,894.
