Rents in Los Angeles County have fallen to their lowest point in four years, offering some relief to renters, but the declining prices still do not make housing affordable for most recent college graduates. In the second quarter of 2026, the median asking rent in LA County dropped to $2,603, a 3.4% decrease from the previous year, marking the lowest figure since 2021.
The decline is attributed to shifting renter habits following the COVID-19 pandemic's peak, increased housing supply from new multi-family developments, and the construction of accessory dwelling units.
Despite the overall drop, housing affordability remains a significant hurdle for new graduates entering the job market. According to a Realtor.com report, many new graduates in Los Angeles will still spend around or more than the recommended 30% of their income on rent. This contrasts with the national trend, where the average median asking rent for a studio apartment across 50 of the country's largest cities is projected to consume less than 30% of the average starting salary for graduates in fields such as Computer Science, Business, Social Science, and Communications.
Specifically, in Los Angeles, while computer science graduates are projected to spend 25.7% of their average $94,000 starting salary on rent, those in business are expected to spend 30.4% of their $79,000 average salary. Social science graduates face spending 31.6% of their $76,000 earnings, and communications graduates are projected to spend the highest proportion at 38.2% of their $73,000 average salary. These salary projections were adjusted with a 15% geographic premium to reflect Los Angeles wage levels.
Economist Jiayi Xu of Realtor.com noted that while renters are experiencing meaningful relief, lower asking rents do not automatically equate to affordability for recent graduates. Even with the recent declines, many new graduates will continue to face difficult housing tradeoffs.
However, Xu also advised new graduates aspiring to live in Los Angeles not to lose hope. The increased supply of rental units, particularly for smaller, entry-level accommodations, offers more options and opportunities for recent graduates navigating affordability concerns in the market.