LOS ANGELES - Los Angeles rent prices are falling for the first time in a decade, thanks to the COVID-19 pandemic.
A new report published by real estate data tracking company CoStar indicates that new apartments, and those under construction, are facing the biggest decreases in rent prices. By how much, though, depends on the neighborhood, with the biggest decreases in the Pasadena area, where a lot of new construction has gone up around transportation hubs. But just about every area is getting hit because hundreds of thousands of people are either out of work or not getting paid while being ordered to stay at home.
Add to that, the eviction blocks for COVID-19 related income loss that Mayor Garrett just ordered, and renters have reason to feel a little better about things. On the other hand, small property owners who are living on rents have reason to be really unhappy, at least for the near future.
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The report indicates that they expect the trend to continue, but quickly add that this market is unique, and long term predictions are much more difficult to make. Southern California real estate economics, dictated by housing shortages, have generally favored landlords and owners, and most realtors we spoke to are hoping that, even with coronavirus, the market fundamentals will not change.
But for now, if your rent is not going down, you may want to talk to your landlord or look around for a better deal, because you may get it.