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USC Casden Forecast: Expect Triple-Digit Rent Increases
The 2019 USC Casden Economics Forecast predicts that the average Southern California apartment dweller will pay at least $100 more per month by 2021. While salaries increased slightly more than rents across SoCal in 2019 – indicating a slight uptick in affordability – housing costs and below-average construction of units are forcing workers to seek employment elsewhere.
“Rents are continuing to rise, and at a slower pace. And rents in the past year rose a little bit less than renter incomes,” said Richard Green, director of the USC Lusk Center for Real Estate, which authors the forecast each year. “Still, an ongoing lack of affordability is causing skilled workers to flee the region and seek employment and housing elsewhere.”
The annual forecast predicts that over the next two years, rents will increase over their 2019 levels by $139 in Los Angeles County, $106 in Orange County, $209 in San Diego County, $110 in Ventura County and $100 in the Inland Empire, which includes San Bernardino and Riverside counties.
Meanwhile, vacancy rates remained relatively stagnant, as SoCal added new units at a much slower rate than other western U.S. cities.
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