Rents rising in large apt. complexes

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Good morning, again. We don’t generally post about rental prices and trends, but Better Village requested something, and lo and behold, the LATimes has a story this morning. Headlines, highlights, insights and asides:

Headline: In large apartment complexes (100 or more units), average rents in L.A. and Orange County rose 5.2% from year-ago levels. During that time period, median sales prices for homes in L.A. County rose 1.2%. Insight: We have no idea what percentage of renters live in complexes this large, and the story doesn’t take a stab at that question. One of the reasons we rarely post on rentals is that we don’t know the statistical landscape very well.

Headline: Conflicting trends. Westside Rentals says demand for rentals is up, but the company has been ‘getting more calls than ever’ from real estate agents interested in leasing out homes because they have been unable to sell them. That would indicate that both supply and demand are rising.

Headline: You can lease a 3-bedroom house in Corona for $500/month.

Headline: The average rent in L.A .and Orange County in large complexes is now $1,630 per month.

Aside: We see more and more brand-new condos for rent. Our unscientific analysis indicates this would lead to higher average rental prices. Why? Because the brand-new condos we see for rent are expensive -- so expensive no one will buy them. They will not be cheap, or even, ‘average’ rentals. Hence, they will likely lead to higher average rents. If this trend drives up average rental prices, is that necessarily bad news for renters? No. In that scenario, it simply means there are more expensive rentals available.

Your thoughts? Comments? Email story tips to lalandblog@yahoo.com
Hat tip: Better Village