Rents in Southern California will climb faster in next two years, study says

http://touch.latimes.com/#section/5/article/p2p-81605500/


Rents in Southern California will climb faster in next two years, study says

Lawrence K. Ho / Los Angeles Times

A new study projects rents will grow in Southern California by more than 8% over the next two years.

Housing costs are a greater burden in L.A. than elsewhereBy Tim Logan

October 7, 2014, 5:00 a.m.

Renters, get ready to pay a little more.

The cost of the average apartment in the Southland is projected to grow more than 8% over the next two years, according to a report out Tuesday.

A new study from USC?s Lusk Center for Real Estate projects that rents will climb 8.2% in Los Angeles County by mid-2016, to $1,856 a month, on average. In Orange County, the prediction is 8.6% growth, to $1,806. And in the Inland Empire, the study forecasts 9.9% rent growth to $1,246 a month.

If those forecasts pan out, rents would grow over the next two years faster than the 3% to 4% clip seen in the last 12 months, despite vacancy rates that are expected to decline a bit as more new apartment buildings open.

  Guess this explains why IAC charge less for 5 month lease vs 18 month lease.

If those forecasts pan out, rents would grow over the next two years faster than the 3% to 4% clip seen in the last 12 months, despite vacancy rates that are expected to decline a bit as more new apartment buildings open.

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Won't increased housing supply *increase* vacancy rates?

Would be nice to see a bit more data.  I think the size of LA county warrants more than just what's average.  Also, how about a logical reason that actually supports the increase?  The study is apparently a magical black box that spits out a conclusion.

This reporter gets a C-.