California, of all places, could give some indication that the rental housing market is cooling down. For Los Angeles, year-on-year rent growth peaked in April, at 22%, Ratiu said. Since then, the region has experienced a dramatic slowdown in rent growth, with prices rising by about 4% in July compared to the previous year. In California, a new report shows that the cities most expensive for renters aren't in Los Angeles or San Francisco.
The regions of San Diego, San Jose and the Bay Area, the country's three most expensive metropolitan areas, continued to see increases in July, but rates in California are encouraging, Ratiu said. Across the country, pressure is being felt in big cities, which saw an exodus of tenants at the start of the pandemic, as well as in the suburbs. Clean energy is booming and not all rural communities are adopting it. The signs of the slowdown seen in California are already being hinted at in national numbers.
Rent increases in California peaked and fell earlier than in other parts of the country, Ratiu said. Policy You may occasionally receive promotional content from the Los Angeles Times. Christian Martinez is a Metro reporter who covers breaking news in the Los Angeles Times. He previously wrote for the USA Today newspaper network, including the Ventura County Star, where he covered the Thomas and Woolsey wildfires and the Borderline mass shooting, the Spectrum %26 Daily News in Utah and the Lansing State Journal in Michigan.
He was born and raised in Southern California and attended Saint Mary's College of California. According to Redfin, domestic rents rose 15% year-on-year in April, down 2% from the 17% increase in March. For example, the average rent for a one-bedroom apartment in notoriously expensive cities like San Francisco, Manhattan and Seattle is declining, while cities like Kansas City, Missouri, Gilbert, Arizona and Las Vegas are experiencing spikes in average one-bedroom rental prices. While the average rent for a room has dropped 45% in San Francisco and 27% in Manhattan, Carberry believes that at some point prices will stabilize as cities begin to reopen and people seek to return to work.
With remote work at stake, many are leaving expensive cities like New York, Los Angeles and Chicago to go to the suburbs or to more affordable cities like Austin, Phoenix or Nashville, according to a LinkedIn report. The CEO of the Greater Los Angeles Apartment Association, Daniel Yukelson, told Spectrum News to take the Redfin rental report with a grain of salt. The new report comes as Los Angeles and many places in Southern California are experiencing tremendous demand for apartments to rent.
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