The 2014 USC Casden Multifamily Report Forecast is out and clearly the demand for multifamily rentals are growing both in Los Angeles and throughout most of Southern California.
Los Angeles, Orange County, San Diego County and the Inland Empire have all seen increased demand and increased occupancy rates. The study sited the most dramatic decrease in vacancy rates was in the Inland Empire with a 30 percent decrease, next was Orange County with a 14 percent decrease followed by Los Angeles with a 10.8 percent decrease. San Diego had the lowest but still notable decrease at just 2.8 percent.
Consequently the average rents in all four markets increased between second quarter 2013 and second quarter 2014. Los Angeles County had the highest average rent at $1,716, the second highest was Orange County at $1,663 followed by San Diego County at $1,498 and the lowest was the Inland Empire at $1,134.
As for average rent increase the Inland Empire lead the pack at 4.1% average increase followed by Los Angeles County at 3.9%, Orange County was the third highest at 3.2% and San Diego recorded the lowest increase at just 2.8%.
The study went on to forecast rising rents for all four metro areas over the next two years, with slightly decreasing vacancy rates in Los Angeles and Orange Counties, while San Diego is predicted to be flat for vacancy fluctuations and slight a increase in vacancy rates is forecast for the Inland Empire.