03/29/2024

Rent headaches: 8 reasons why Southern California feels the financial pinch

The rent check can sting in Southern California.

The regional cost of renting has surged at double the pace of overall inflation so far this century. Renters in Los Angeles and Orange counties give more of their paychecks to the landlord than any other metro in the nation. And perhaps three-quarters of Southern California’s renters claim they are ready to bolt.

An exaggerated upswing in Southern California rent is frequently blamed on an economic mismatch: solid employment growth outstripping the developers’ ability to build enough apartments to meet demand, especially for those not seeking luxury digs. Rising home prices also nix ownership for many. So, a growing flock of renters is chasing too few vacant units, and that supply shortfall pushes up rent prices.

To better understand the monetary impact of high rents, here are eight examples of how they affect Southern California’s family budgets:

1. LARGE NUMBERS

Essentially, local rents are running in the ballpark of record highs while vacancies are near previously unseen lows.

Second-quarter data from NAI Capital, tracking what’s happening at large complexes owned by giant landlords, show:

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