Home News Rents fell in some California metro areas; is a wider cooling trend ahead?

Rents fell in some California metro areas; is a wider cooling trend ahead?

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Overall, average rents in the nation’s 50 metropolitan areas rose last month, although the Los Angeles, Long Beach and Anaheim areas saw declines. (Gina Ferrazzi/Los Angeles Times)

California, in particular, may be showing signs of a cooling down in the residential rental market.

Median rents rose $3 to $1,879 in July across the nation’s 50 metropolitan areas, the 17th consecutive month of increases and a 12.3% year-on-year increase, according to Realtor.com data. .

But in the Los Angeles, Long Beach, and Anaheim metropolitan area, which has the fourth-highest rents in the United States, rents fell $4 to $3,047. Rents dropped $22 in the Riverside-San Bernardino-Ontario area and $19 in the Sacramento area.

George Latieu, senior economist and economic research manager at Realtor.com, said the decline showed markets were cooling, and that the rest of the U.S. could see a similar easing. is.

For Los Angeles, year-over-year rent growth peaked at 22% in April, Ratiu said. Since then, rent growth has slowed dramatically in the area, with July prices up about 4% year-on-year.

San Diego, San Jose, and the Bay Area—the three most expensive metropolitan areas in the nation—also saw increases in July, but California rates are still promising, Latiu said.

“I think it’s very important to look at individual markets from time to time because it gives you a different perspective,” Latiou said. “The national picture looks flat, but as we know the real estate market is never flat.”

Nationwide, the pinch is being felt in big cities and suburbs that saw an outflow of renters at the start of the pandemic.

Realtor.com Chief Economist Danielle Hale said:

The signs of a slowdown we’re seeing in California are already implied in the national numbers.

Nationwide median rents hit a record high in July, but the rise from median June rents was the smallest ever in 2022. It was also the lowest previous year since August 2021. Recorded specific growth.

“I think what we’re seeing in the California market today is in some ways a trajectory of the national rental market,” said Ratiu.

Rent growth in California peaked earlier than in other parts of the country and fell quickly, according to Latiu.

“It’s a natural rebalancing of the housing market after two really frenetic and very extraordinary years that have distorted so much, both economically and financially,” he said.

According to a study by Avail, a property management platform owned by Realtor.com, 60% of renters report that rising rents and rising household expenses are the top causes of their financial burden.

The study also found that more than half of renters who have lived in their current apartment for a year or two have experienced a rent increase, with a median increase of $160 per month.

This story originally appeared los angeles times.

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