Higher Rents Expected in SoCal Rental Market
Abc7.com -- April 4, 2007
LOS ANGELES, Apr. 4, 2007 (CNS) - Increasing demand is expected to result in apartment rents increasing by an average of 3 to 5 percent over the next year in Southern California, according to a report issued Wednesday.
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Monthly rents are expected to average $1,470 in Los Angeles County, $1,472 in Orange County and $1,036 in the Inland Empire, according to the Casden Real Estate Economics Forecast released by USC's Lusk Center for Real Estate.
Southland occupancy rates will average 96 percent, with rents rising an average of 3 to 5 percent as demand outpaces supply, the report predicted.
"As economic activity expands across the region, steady job growth and high home prices bode well for landlords," said Delores Conway, the forecast's director. "Strong investor interest and favorable long-term interest rates should help sustain sales activity of apartment building in all markets even as more units are being built.
The meltdown of the subprime mortgage market is "causing many potential homebuyers, who now face a larger down payment and higher monthly payments, to find renting more affordable," Conway said.
Transit-oriented development in Hollywood will draw strong interest, while the South Bay and Long Beach areas are on a steady path to recovery with rising rents and tight occupancies because of escalating global trade at the ports of Long Beach and Los Angeles, according to the report.
The original article can be found here
