A recent report from the Census Bureau highlights a significant drop in LA's rental vacancy rate from 3% in 2016 Q1 down to 2.4% in 2016 Q4. With a national average of 7.1% for the nation's largest metro areas, LA ranks at the bottom in terms of available supply for folks looking to rent. This continues a longer term downward trend--LA's vacancy rate was 6% in 2010.
Low rental inventory is especially concerning in LA, which has the highest percentage of renters (52%), according to the Harvard Joint Center for Housing Studies. Even more concerning is that with remaining supply, we see the same effect we're seeing with the residential real-estate market--higher prices. Marcus & Millichap predicts rental prices to rise 5% in 2017 to reach a city average of $2,095. LA's current median rental price stands at around $1,990.
This could prove to be a great entry point for those looking to get in the rental game. Looking for properties to rent out? Reach out and let's have a conversation.