Monthly rents to increase over next 2 years in Southern California: report

Source: Xinhua| 2017-10-12 11:27:56|Editor: Yurou
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LOS ANGELES, Oct. 11 (Xinhua) -- Average monthly rents are expected to increase over the next two years in Southern California in the United States, a report released Wednesday said.

According to 2017 University of Southern California (USC) Casden Economics Forecast, rising employment combined with an ongoing lull in homeownership will again drive rent increases over the next two years throughout the region.

The forecast, which is produced annually by the USC Lusk Center for Real Estate in partnership with Beacon Economics, finds that by 2019, average monthly rents are expected to increase over 2017 levels by 136 U.S. dollars in Los Angeles County, 149 U.S. dollars in Orange County, 124 U.S. dollars in the Inland Empire, 121 U.S. dollars in San Diego County, and 98 U.S. dollars in Ventura County.

"It's certainly no surprise to anyone - developers, landlords, tenants and elected officials - that available units are becoming more scarce and more expensive in Southern California," said USC Lusk Center Director Richard Green, who co-authored this year's forecast.

"As employment and wages improve in the region, homeownership remains stagnant. This combination is a key stressor in the availability and cost of apartments and has an increasing impact on the local economy," he said.

With unique geographical advantages, California has long attracted a great number of investors, travelers and residents, but the forecast shows challenges for new residents.H According to the forecast, local renters who moved from another state paid 200 U.S. dollars more than current residents while renters who moved from elsewhere in California paid about 124 U.S. dollars more.

"The high cost of housing is a huge challenge for employers attempting to recruit out-of-state talent," said Christopher Thornberg, co-author of the forecast from the Beacon Economics.

The forecast's authors conclude that rent growth is outpacing income growth at a level that is not sustainable.

Other research released last month by University of California Berkeley's Institute of Governmental Studies showed that 56 percent of California residents are considering moving due to the skyrocketed housing costs.