Apartment Rents In Los Angeles Are Down By 12% Year-Over-Year Since Start If Covid-19 Pandemic

Apartment Rents In Los Angeles Are Down By 12% Year-Over-Year Since Start If Covid-19 Pandemic

Thanks to recent data, we know that apartment rents in Los Angeles have declined by 12% year-over-year, in West Hollywood and LA, since the beginning of the Covid-19 Pandemic.

This was to be expected because the Pandemic has been responsible for a variety of factors including lockdowns, job losses, and economic insecurity across the Los Angeles area so it was only a matter of time before landlords started to slash rents to attract more tenants.

Is it a sign of things to come for the rental market in Los Angeles?

In this article, we will answer this question and provide you with things that you need to know about the LA apartment rental market for 2021 and beyond.

What Will The 2021 Los Angeles Apartment Rental Market Look Like?

With apartment rents also falling by 1.1% during September, landlords in the Los Angeles area are understandably concerned about what the future is going to hold for the local rental market in 2021.

Current monthly rents for a one-bedroom apartment in the LA area are:

  • Santa Monica – $2,690
  • Newport Beach – $2,590
  • Beverly Hills – $2,500
  • West Hollywood – $2,300

Even though most landlords may be concerned about the drop in rents across the LA area, the reality is that with the recent decreases, Los Angeles only ranks 11th in the United States for rent decreases behind other cities like San Francisco and New York.

One of the biggest reasons why rents continue to decrease in Los Angeles, and across the United States is with a deepening recession, and ongoing pandemic, many renters are moving from Class A to Class B and C rentals while others renters are moving on to buying their first homes.

Rent Control May Pressure Rents In Los Angeles To Continue Decreasing

Besides the moves that renters have been making, another big factor that’s been influencing rents in Los Angeles, and across California, is the continued pressure from politicians and tenants groups to enact state-wide rent control with Proposition 21, a rent control measure that’s currently on the November ballot.

With the November election days away, proposition 21 will likely receive more support from voters than Proposition 10 did back in 2018 and with the state of California currently embracing partial rent control, it’s possible that we could see full rent control if Proposition 21 is approved.

As we get closer to the start of 2021, there are a wide variety of factors that are up in the air which could affect rents including job losses, lack of fiscal stimulus, and a pending eviction crisis.

Don’t Enter 2021 Without Working With A Property Manager

The rental market in California is changing fast and this makes it more important than ever before for Los Angeles landlords to work with a local property manager.

At the MW Real Estate Group, we know the local rental market and can provide you with the expert property management services that you need to rent your property for the most money possible.

To learn more about the property management services that we can offer you, contact us today by calling (213) 927-2117 or click here!

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