Rental Rates Cooling Off? Real CapDaily #21
Rental rates in Los Angeles are starting to cool off. While the changes are not huge, there is an increase in the number of listings on market. Why is this happening?
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Renters have been taking the brunt of inflation so far. As prices of all goods and services have risen since the start of the pandemic, this is putting the squeeze on their ability to pay more rent. On average, renters in Los Angeles have to work 81 hours to earn enough to pay rent at the national average wage. The average across the country is 63 hours.
Overall, rental prices rose since 2021, but are now beginning a pullback since September.
How long will this trend last? It’s hard to say, but as long as there is an economic downturn, higher living expenses, and inflation it will likely move around some to the downside. Rental rates in high demand areas will continue to rise while inflated markets will likely fall. Do you own an income property, condo, house, or multifamily building? We provide rental services as well to help landlords quickly rent their properties. Please reach out for more information.