Southern California tenants are seeing rent inflation rising once again.
My trusty spreadsheet looked at the rent slice of the Consumer Price Index for March in three local markets: Los Angeles and Orange counties, the Inland Empire, and San Diego County. This rent metric is different than most as it’s based on polling of tenants in various housing – from big complexes to homes and condos – asking consumers what they pay their landlord. Other industry yardsticks tend to focus on the costs of new leases.
The average Southern California renter saw costs rise at a 5.2% annual rate in March – that’s up from the recent low of 3.8% in December 2024. Still, it’s an improvement from the pandemic era’s 9.7% peak in April 2023. And let’s not forget the long-run pain for tenants: rent is up 36% in six years.
Local rent hikes were cooling in late 2024 as a rush of new supply created competition among landlords. But that building boom has slowed.
Then came January’s wildfires, destroying 12,000-plus structures in Los Angeles County, further amplifing the supply shortfall. Plus, landlords face their own rising expenses – from pricier insurance to costlier staffing and repairs.
Yet demand stays strong as rentals are the low-cost housing option. Only 14% of Southern Californians could afford to buy a house at year-end 2024, according to the California Association of Realtors.
Here’s how rents swung in local markets …
L.A.-Orange County: 4.9% rent inflation in year ended in March, up from November 2024’s 4.5% low but down from 5.8% recent peak in July 2023. Last six years? Up 26%.
Inland Empire: 4.9% inflation, up from October 2024’s 2.4% low – but off from 12.2% high in April 2023. Last six years? Up 44%.
San Diego: 5.9% inflation, up from December 2024’s 4.3% low – but off from 11.5% high in April 2023. Last six years? Up 37%.
By the way, rent hikes are still cooling nationally. The 4% increase in March was the smallest since the pandemic era’s 8.8% peak in March 2023. But the nation’s tenants have seen rents jump 32% in the last six years.
Jonathan Lansner is business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
Originally Published:
