Rents are now dropping in 63% of Southern California cities.
According to Apartment List data tracking 54 cities across the region, many of the biggest rent declines are happening in some of the more affordable areas of Southern California.
Pomona rents dropped 6.9%, Chula Vista fell 4.7%, Pasadena dropped 4.5%, Glendale declined 4.3%, and Santa Monica saw one of the largest decreases at 8.8%.
Across all 54 cities, rents declined by a median 0.7% year over year, with one-bedroom apartments averaging $1,952 and two-bedroom units averaging $2,370.
The report points to several reasons landlords are feeling pressure right now:
• A softer local job market
• Inflation continuing to strain renters’ budgets
• Newly built apartment inventory increasing competition
But what stands out most is how uneven the market has become depending on location and income.
While much of Southern California is finally seeing some rent relief, Orange County was the exception.
OC rents actually increased 0.4% overall, with some of the biggest jumps happening in:
• Aliso Viejo: +6.9%
• Newport Beach: +3.7%
• Mission Viejo: +2.2%
The article also notes that cities with rising rents were generally more expensive to begin with, which may be another sign that the current economic pressure is hitting lower-income households the hardest.
Source: Jonathan Lansner, Orange County Register / Apartment List
