Rent prices have fallen in 32 out of 53 surveyed cities across Southern California, with Los Angeles and Ventura counties experiencing the most substantial percentage decreases in rental costs. This trend offers a counterpoint to the state's persistently high home prices.
In Santa Monica, rent has decreased by 6% over the past year, with a one-bedroom apartment now averaging $2,215 and a two-bedroom at $2,656. Similarly, Pasadena has seen a 5% dip, with one-bedroom units available for $2,110 and two-bedrooms around $2,700. Hundreds of one-bedroom apartments in areas like Brentwood and Century City in Los Angeles County are listed for under $2,300.
Across the broader region, the median cost for a one-bedroom apartment is $1,921 and $2,359 for a two-bedroom, reflecting a 0.4% decrease, according to analysis citing June data from ApartmentList. In contrast, the 20 cities where prices increased saw significantly higher median rents of $2,146 for a one-bedroom.
This cooling rental market is attributed to a softening economy and an increase in new housing units coming onto the market, leading to higher vacancy rates. Landlords are reportedly slashing prices to attract and retain tenants.
San Diego and the Inland Empire also experienced notable rent reductions, with 63% and 54% of their respective cities showing lower rental rates. Other areas, including Oxnard and Monrovia, have seen discounts of up to 4%.
The easing rental market stands in contrast to California's for-sale housing market, where many homeowners are holding onto their properties. Data from Realtor.com indicates that Californians have been increasingly withdrawing their homes from the market amid economic uncertainty, geopolitical tensions, and elevated mortgage rates. Since May 2022, the state's share of delisted homes has risen to 6.3%.