Rent Growth Cools Across SoCal Markets
The four major Southern California apartment markets averaged a decade-high rent increase of 6.6% in the year-ending 3rd quarter 2015. Since then, increases have moderated. In the year-ending 2nd quarter 2019, rent growth across Southern California cooled to 3.2%. While that was well below the recent high just four years ago, it was in line with the decade-average growth rate of 3.1% annually. The biggest drop among the four SoCal markets was seen in San Diego. After achieving a hike of 7.6% in the year-ending 3rd quarter 2015, annual rent growth in San Diego eased to just 2.8% in 2nd quarter 2019. In Los Angeles, annual rent growth fell from 6.7% in early 2016 to 2.8% by mid-2019. Rent increases in Anaheim hit 6.0% in mid-2015 and dropped to 2.5% in mid-2019. While Riverside continued to record a solid price increase of 4.6% in the year-ending 2nd quarter 2019, that was well below the 8.0% hike posted in the year-ending 3rd quarter 2016.