Beverly Hills Rents Plummet as Other LA Areas See Sharp Increases

Rents in affluent Los Angeles neighborhoods, including Beverly Hills and Santa Monica, have seen substantial decreases over the past year, according to a recent survey. Concurrently, more affordable areas across Los Angeles County are experiencing significant annual rent hikes.

The Zumper Los Angeles Metro Area Report, which analyzed active rental listings, found that 12 out of 27 cities in the region showed lower median rents for one-bedroom apartments compared to the previous year. The overall median rent for a one-bedroom in the greater Los Angeles area is $2,057 per month.

Beverly Hills, once among the most expensive rental markets, saw a year-over-year decline of 8.6% for one-bedroom apartments, with average asking rents falling to $2,750. This affluent enclave also experienced a 4.2% drop in rents month-over-month. Two-bedroom rentals in Beverly Hills decreased by 12.3% year-over-year and 6.1% month-over-month, with average rents at $4,150.

Other high-end areas also reported cooling rental markets. West Hollywood saw a year-over-year decline of 5.8% for one-bedroom units, while Redondo Beach and Huntington Beach experienced annual drops of 6.9% and 5.6%, respectively. Even Santa Monica, the most expensive city at an average of $2,830 for a one-bedroom, experienced a 2.4% month-over-month decrease.

Experts attribute these diverging trends to a combination of increased supply in pricier areas and shifting demand toward more affordable locales. Crystal Chen, a housing market expert for the Zumper Blog, explained that new high-end developments in areas like Beverly Hills and West Hollywood give renters more negotiating power, leading to downward pressure on rents as landlords compete for tenants.

"Lower-end neighborhoods, meanwhile, are seeing price spikes largely because they offer relative affordability," Chen stated. "As renters get priced out of city and coastal centers, demand shifts toward these more affordable pockets, pushing prices up there instead."

In contrast, more affordable cities have seen notable rent increases. San Bernardino, offering the region's most affordable one-bedroom rentals at an average of $1,470 per month, saw a 5% year-over-year increase. Palmdale, where one-bedrooms average $1,570 per month, recorded the largest year-on-year price hike at 12.1%. Lancaster was an exception, with one-bedroom rents remaining 11.9% lower than a year prior, despite a 5.7% increase from the previous month.