(코리아타운뉴스) L.A. Rent to Rise by 5 Percent This Year

Marcus & Millichap Report
Average to increase to $2,095 a month

The cost of renting a home in Los Angeles is expected to rise once again in 2017, placing a heavier burden on those who plan on moving within or into the city.

A report released by real estate firm Marcus & Millichap hinted that the average rent in L.A. could rise up to $2,095 by the end of the year to mark a 5.4 percent increase in comparison to last year.

The reason for the increase in price is mainly due to slowing supply of vacancies versus high demand as the vacancy rate for apartments in the L.A. County remains low at just 2.6 percent. For the last few years, average rent in the city has been on a 3 to 5 percent rise on an annual basis.

The report also added that the controversial Measure S ballot, which could possibly be approved by voters on March 7, will play a big role in cost of rent in L.A.

If the ballot measure is approved, a two-year moratorium will be placed on many larger-scale construction projects in the city. Considering the large number of apartments which have been approved under the local zoning guidelines, the ballot measure is likely to speed up the rent increase in the city as the supply of vacancies will be even slower.

On the contrary, the newly built apartments are mostly luxury properties already charging high rent on tenants.


By Hyun Woo Kim