Economics Study Predicts Triple-Digit Increase in L.A. Rents

Dismal news for renters of apartments, especially fixed-income and low-income renters: a new study prepared by Beacon Economics for the USC Lusk Center for Real Estate predicts average rents in Los Angeles County to increase on average by $109 by the year 2018.

Raphael Bostic, interim director of the USC Lusk Center for Real Estate, explained that new construction is insufficient to keep up with rising demand, population increases and low vacancy rates. He added that most multifamily construction in Southern California, particularly in Los Angeles and Orange counties, targets higher- income renters.

"While new inventory tends to favor higher incomes and more affluent neighborhoods, there is hope for other classes of renters," Bostic said. "High-end renters are the first to become homebuyers. As the demand for high- end dwellings slows, savvy developers will seek more projects built for people of more modest means.”

According to the study, the average rent in Los Angeles County was $1,307 in 2015, an increase of $59 from 2014.