Southern California apartment rents are expected to continue rising through 2018

"Population and employment growth are driving up demand faster than new inventory can hit the market. The average rent in Los Angeles County is expected to hit $1,416 a month in 2018, an 8.3% jump from last year, while in Orange County, average rents are likely to rise 9.4% to an average of $1,736."

"Permits for more than 38,000 multifamily units were pulled last year across Los Angeles, Orange, San Bernardino, Riverside and San Diego counties - the most since before the recession. But much of the new supply is on the pricey end, and economists say much more construction is needed because California has consistently built too few units relative to population growth."

"Last year, a report released by the California Housing Partnership Corp. said Los Angeles County needed more than 500,000 additional below-market rental homes if low-income residents were not to live beyond their means or in overcrowded apartments."

Southern California faces escalating apartment rent increases driven by insufficient housing construction relative to population and employment growth. Los Angeles County rents are projected to reach $1,416 monthly in 2018, an 8.3% increase, while Orange County rents will rise 9.4% to $1,736. San Diego, Riverside, and San Bernardino counties will experience similar increases of 10.9%, 7.3%, and 7.3% respectively. Despite developers pulling permits for over 38,000 multifamily units across five counties—the highest since before the recession—most new supply targets higher price points. Economists emphasize California has chronically underbuilt relative to population growth, with Los Angeles County needing over 500,000 additional below-market rental homes. While rent growth rates are expected to gradually slow as new apartments enter the market, demand continues outpacing supply.

Read at Los Angeles Times