SoCal Rents Skyrocket Amid Housing Shortage
Apartment rentals in Southern California are moving into astronomical territory, according to a report released Monday by real estate intelligence provider Axiometrics. For the first time, the average apartment rental in the Inland Empire topped $1,500, a 6.7 percent rise from last year when rents were averaging $1,407.
Meanwhile, the average rental in Los Angeles County is now a whopping $2,271. Rents were also up in Orange and Ventura counties.
There’s more where that came from. This year, L.A. County rents will rise 3.5 percent. Orange County is expected to see an increase of 3.8 percent.The situation will continue to be starkest in the Inland Empire, where rents are slated to increase by 4.6 percent.
“There is a genuine need for more housing across much of California, and nowhere is the severity of the situation more apparent than in the Inland Empire,” said Robert Kleinhenz, executive director of research at the Center for Economic Forecasting and Development at UC Riverside. Among other things, Kleinhenz says the California Environmental Quality Act (CEQA) is being used to slow necessary development, reducing the state’s housing supply and driving costs through the roof. Read more about Southern California’s soaring rental prices here.