Demand driving LA’s residential rental market

Let’s face it, people like to live in LA. Mostly owed to a constant flow of people choosing to put down roots in Los Angeles, a steady job growth thanks to the private-sector and a shaky single-family housing market, finding an affordable apartment in Los Angeles is getting tougher.

Vacancies are dropping, and as a consequence, rents in the metro area are expected to continue growing. In the most recent 12 months, asking rents rose 2.2 percent to $1,405 per month. Effective rents grew at a more accelerated pace of 2.7 percent in the same time frame, to average $1,358 per month, according to national multi-housing group Marcus & Millichap.

So what does this mean for you? Well it means you’ll probably be paying more for your rent or you may have to shift from a fancy Silver Lake hip pad to something on the up-and-up instead. The good thing about this trend is that it fosters new developments and revitalization of stagnant neighborhoods, restoration of old buildings and their conversion to residential lofts, which ultimately act as catalysts for new businesses and new jobs. And in the end it’s us, the renters, that will benefit from this tendency, safe neighborhoods, green spaces, variety of choice, and more amenities that will lead to a better quality of life.

Your rent may be up, but new developments aren’t far behind and that will hopefully take the edge off and offer some great new opportunities for amenities and living.  Stay patient and stay in the black with your renter’s budget.