The rent in Los Angeles is among the nation’s highest. That was the conclusion published this week by the UCLA Ziman Center for Real Estate, no doubt expanding considerable man hours and monetary efforts.
Earlier this year, a report by Zillow.com reached the same conclusion. In Zillow’s survey, Los Angeles rents are consuming 47% of the average renter’s income. That is 13% higher than 2000 rents, and some agents say the upper limits haven’t been reached.
The issue is a low supply of affordable rental properties. A Zillow spokesman said that the U.S. has added 6.2 million tenants between 2007 and 2013. In contrast, homeowners are up 208,000.
“Rents seem like they will continue up for the foreseeable future,” said Michael Caldwell of Housing Solutions. “Just how high and how long it will last is something every landlord with a vacancy and every apartment seeker is asking.”
The key to the continual rise is basic. Southern California is a desirable place to live, and certain areas have high demand. “With vacancy rates so low, landlords can keep asking for higher rents and renters may keep paying it, happily or begrudgingly,” said Caldwell.
UCLA researchers claim that L.A. is the MOST unaffordable place in the US, topping even San Francisco and New York, who beat us on the upper end of prices in many locations. However, the median income in L.A. is lower, and the city has few rent-controlled apartments. Thus, we are more unaffordable.
According to statistics from RentMetrix.com, the average price of a one-bedroom apartment in Beverly Hills is $2133. In the eastern half of the city, the pricey Los Feliz area clocks in at slightly under $1500, depending on which site you believe.
So if you want to rent in Beverly Hills, that means you must make roughly $50,000 per year if you wish to rent an apartment. In Los Feliz, you must make $36,000 per year.
Of course, you can always live in mom’s basement or with your in-laws. Failing that, there’s always the Valley. The deep Valley, of course.