It is no longer normal to see rent increase…
The Orange County Register reports that Los Angeles and Orange County are not seeing rent hikes for the first time since Spring 2010. However, Riverside and San Bernardino Counties registered a marginal six-year high in rent increases.
“Los Angeles and Orange County simply have been hit comparatively hard by job cuts, since the local economies are heavy on the hospitality and service sector industries where layoffs are most widespread,” Chief Economist for Dallas-based RealPage, Greg Willett said. “The Inland Empire economy has fared better because of the bigger role that product distribution plays.”
Obviously, the Pandemic has had a lot of sway these days. Jeff Collins alludes to the fact that vacancy numbers are partly responsible for the huge blow in rents within the LA and OC Counties. Many are finding comfort in moving back in with their parents, or teaming up with a roommate to tackle rent, but the swollen unemployment numbers are forcing independent people to depend on financial anchors within their families.
Willett reported that about 7,600 people moved out of their apartments this spring. At the bare minimum, people are even starting to break their leases to avoid undue financial hardship. Professionally, we are seeing an uptick in remote work available. Collins further sheds light on the ‘digital nomad phenomenon.’ Many are stuck in a geographic limbo where they are hired for work out-of-state, but cannot actually report to the facility so they find themselves moving around—only bound by access to Wi-Fi.
“We are also seeing a migration of renters and homeowners out of the crowded cities to suburbs,” he said. “For example, Santa Barbara County is now seeing increased housing demand as Angelenos are looking for an escape from the worsening environment of the Los Angeles area.”
The Pandemic has brought with it multiple headlines including this one about historic mortgage rates.