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USC Forecasts Rent Increment in California Counties for the Coming Years

USC Forecasts Rent Increment in California Counties for the Coming Years

A University of Southern California (USC) study reveals that there is an expected 2-4% rent increment in the Southern California region. The study is cited by the Orange County Register.

USC’s Casden Multifamily Forecast predicts average rent increases for Ventura County. The below-average rent increment is anticipated for the following counties-

  • Los Angeles
  • San Diego
  • Riverside
  • San Bernardino

Orange County will witness an above-average rent increment. It is expected that the rent will hit the roof at $2,800 per month by the end of 2025.

The USC Lusk Centre for Real Estate predicts that although the anticipated rent growth for 2024–2025 is not expected to reach the pandemic’s dramatic increases of 12–18% per year, the rate of rent increases will pick up in the next two years as flat construction slows down.

It is predicted that over the next two years, the percentage of vacant properties will remain between 4 and 6 percent. The forecasters predict a drop in new supply. The renting sector struggles with financing. This struggle will show its impact on the potential renters as they will have to pay high rents due to the lesser number of properties available.

Although the number of delivered units has been above average over the past 12 months, the forecast highlights that the scarcity of rental housing in Los Angeles County remains a persistent problem. To meet demand, the county still finds it difficult to build enough housing.

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