Sky-high apartment rents in Southern California are expected to climb further in coming years, as construction fails to keep up with population and job growth, according to a forecast released Tuesday.
The average rent in Los Angeles County is expected to hit $1,416 a month in 2018, an 8.3% jump from last year, while in Orange County, average rents are likely to rise 9.4% to an average of $1,736, the USC Casden Multifamily Forecast said.
The projections come even as developers are building. Permits for more than 38,000 multifamily units were pulled last year across Los Angeles, Orange, San Bernardino, Riverside and San Diego counties — the most since before the recession, according to the forecast, completed by Beacon Economics and USC’s Lusk Center for Real Estate.
But much of the new supply is on the pricey end, and economists say much more construction is needed because California has consistently built too few units relative to population growth.
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