If you're feeling the pain of high rents in Southern California don't look for things to change anytime soon.
New home construction is not keeping up with demand causing an uptick in rents which puts increased pressure on renters who are on a budget.
According to a USC Casden Multifamily Forecast, the average rent in LA County is expected to hit $1,416 a month in 2018, an 8.3% increase from a year ago, while in the OC, average rents are projected to rise 9.4% to an average of $1,736.
These forecasts come on the heels of news of 38,000 building permits being pulled across Southern California, an obvious sign we are in the midst of a housing shortage.
Population and employment growth are driving up demand faster than new inventory can hit the market," said Raphael Bostic, Interim Director of the USC Lusk Center for Real Estate.
California has a history of not keeping up with housing demand which, again is the leading cause of higher prices. The job market in Southern California has also become increasingly competitive, a good sign for the economy and another factor contributing to the upward trend.
This Spring is likely to be a very busy season in real estate and its looking like a seller's market. Interest rates are still low and if you're sharp and knowledgeable about where to look, there are still some bargains out there. Be prepared to move quickly and get pre-approved for a loan. You'll be well-prepared to jump on an opportunity at a time when inventory is relatively low.
Thank you for reading our latest real estate blog. For more information, contact us The Wise Team by calling/texting (714)698-WISE or emailingDustinandLeah@TheWiseTeamOC.com. As always, if you or someone you know is looking for assistance with purchasing a home, selling a house, or leasing Wed love to speak with you!