The Casden Multifamily Forecast from the University of Southern California (USC) indicates that areas including Los Angeles, San Diego, Riverside, and San Bernardino counties are likely to experience below-average increases in rent.
The University of Southern California (USC) has forecasted a rise in rents across Southern California by two to four percent, as reported by the Orange County Register
Ventura County is expected to witness average increments. Orange County, renowned for its robust rental market, is anticipated to undergo somewhat higher-than-average rent growth, potentially reaching a historic high of $2,800 per month by late 2025.
Despite projections indicating a lower rent surge for 2024-25 compared to the substantial increases during the pandemic, ranging from 12 to 18 percent annually, the University of Southern California (USC)’s Lusk Center for Real Estate foresees a potential acceleration in rent hikes in the following two years. This uptick coincides with a slowdown in apartment construction.
The University of Southern California (USC) report underlines the challenges faced by landlords, particularly concerning the replacement of low-interest loans set to mature in the next four years
Factors such as high-interest rates and escalating operational expenses might result in foreclosures and restrict resources available to expand the housing inventory. Vacancy rates are estimated to hover between 4 to 6 percent over the coming two years. However, as financing within the industry becomes more challenging, the University of Southern California (USC) forecast suggests a potential decline in new housing supply, leading to reduced vacancy rates and escalated rents.
The University of Southern California (USC) forecast stresses the persistent shortage of rental housing in Los Angeles County, despite an above-average number of units delivered in the last year. The county continues to grapple with insufficient housing production to meet the growing demand.
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