October 2023 Rental Market Update

Staying informed about rental market trends in Los Angeles and Glendale is essential for making informed decisions about your investment properties. Here's an update on the current state of the rental market in the area, along with some valuable insights and advice.

Rents in Los Angeles appear to be stabilizing after reaching their peak in August last year. According to the latest report from Rent.com, rents in Los Angeles, Orange County, and Long Beach have increased by 1.65 percent year over year, which is a lower rate of growth than initially anticipated. Experts in the field suggest that we are returning to the typical seasonal changes seen before the pandemic. Historically, rents tend to rise during the summer and then decline once the school year is in full swing.

John Leckie, a researcher at Rent.com, noted, "We normally would expect somewhere between a 2 to 4 percent increase, but rents continue to grow, albeit at a slower rate."

The recent stabilization in prices is primarily attributed to reduced demand, possibly influenced by a softer housing market and historically high interest rates. Leckie explained that this stabilization reflects a decrease in demand, with fewer people relocating and instead choosing to stay put.

It's important to acknowledge that rents in Los Angeles remain on the higher end, especially considering the significant increase witnessed from 2020 to 2022 when prices surged by over 14 percent, resulting in an estimated $450 per month hike.

In conclusion, while the rental market in Los Angeles has stabilized, it's essential to remain vigilant and proactive in managing your investment properties. By staying informed, you can continue to make sound decisions and maintain positive returns from your income property.

Should you have any questions or require further assistance, please do not hesitate to reach out to our property management team. We are here to support you in maximizing the potential of your real estate investments.