Los Angeles, CA Rental Market Trends: A Comprehensive Guide to Apartment Rents
Looking for rent statistics in Los Angeles, CA? You've come to the right place! In this comprehensive guide, we'll dive into the latest rental trends and provide valuable insights into the rent statistics of this bustling city. Whether you're a prospective renter, a real estate investor, or simply curious about the rental market, this article will equip you with the necessary information to understand the average rent prices and variations across neighborhoods in Los Angeles, California.
Table of Contents:
1. Los Angeles, CA Rent Statistics: An Overview
2. Average Rent in Los Angeles, CA: By Apartment Size
3. Rent Trends in Popular Neighborhoods of Los Angeles, CA
4. Factors Influencing Rent Prices in Los Angeles, CA
5. Rental Affordability in Los Angeles, CA: Statistics and Analysis
6. Studio Apartments in Los Angeles, CA: Rent Statistics and Trends
7. One-Bedroom Apartments in Los Angeles, CA: Rent Statistics and Trends
8. Two-Bedroom Apartments in Los Angeles, CA: Rent Statistics and Trends
9. Three-Bedroom Apartments in Los Angeles, CA: Rent Statistics and Trends
10. Los Angeles, CA Rent Statistics: Conclusion
1: Los Angeles, CA Rent Statistics: An Overview
According to the US Census, 63% of housing units in the city of Los Angeles are renter-occupied. In May 2023, the average apartment rent price in Los Angeles, CA was $2,784. Since this time last year, apartment rent prices in LA have increased by 10% - up from $2,533 in May 2022.
2: Average Rent in Los Angeles, CA: By Apartment Size
What are the average apartment rent prices in LA?
The average rent price of an apartment varies depending on how many bedrooms it has. Below is a breakdown of average rent prices for apartments in Los Angeles by bedroom count in May 2023:
- The average rent price for a studio apartment in LA is $1,997
- The average rent price for a one-bedroom apartment in LA is $2,439
- The average rent price for a two-bedroom apartment in LA is $3,391
- The average rent price for a three-bedroom apartment in LA is $4,051
How much have rent prices increased in Los Angeles since last year?
Apartments in Los Angeles have experienced year-over-year rent price increases since May 2022.
- The average rent price for a studio apartment in LA increased by 2%
- The average rent price for a one-bedroom apartment in LA increased by 13%
- The average rent price for a two-bedroom apartment in LA increased by 19%
- The average rent price for a three-bedroom apartment in LA increased by 14%.
3: Rent Trends in Popular Neighborhoods of Los Angeles, CA
What are the most expensive neighborhoods in Los Angeles?
Below are the five Los Angeles neighborhoods with the highest average rent for two-bedroom apartments:
- Carthay: $4,653
- Marina del Rey: $4,574
- Venice: $4,522
- Westside: $4,478
- West Adams: $4,439
What are the most affordable neighborhoods in Los Angeles?
Below are the five Los Angeles neighborhoods with the lowest average rent for two-bedroom apartments:
- Florence: $2,149
- North Hollywood North East: $2,176
- Vermont Square: $2,184
- Panorama City: $2,185
- East Los Angeles: $2,187
Explore more Los Angeles neighborhood rent prices in our interactive map below:
4: Factors Influencing Rent Prices in Los Angeles, CA
Los Angeles is a very expensive city to live in, but there’s no secret as to why people are drawn to calling this place home. The warm weather year-round makes it a desirable place to live, with endless opportunities for outdoor recreation. LA is the second largest city in the U.S. with a growing population of around 4,000,000 and offers diverse art, culture, and dining experiences throughout. It has a robust public transportation system and ample opportunities for walking or biking around the city to avoid heavy traffic. Since Los Angeles is such an attractive city to live in, the high demand plays a contributing role in the high cost of rent prices.
Below are some of the most desirable neighborhoods in Los Angeles to live in along with their average rent price for two-bedroom apartments:
- Beverly Hills: $4,106
- Culver City: $3,919
- Echo Park: $3,345
- Los Feliz: $3,404
- Silver Lake: $3,602
- Venice: $4,522
- West Hollywood: $3,354
As part of the effort to combat rising rent prices, Los Angeles put in place a local law that went into effect on April 1, 2023. The Rent Stabilization and Tenant Protections Ordinance (RSTPO) in Los Angeles County determines the highest allowable yearly rent increase by considering the fluctuation in the annual Consumer Price Index (CPI). This applies to properties in unincorporated regions of the county. Rental units subject to the RSTPO will be restricted to a maximum of 3% rent increases for the remainder of 2023.
5: Rental Affordability in Los Angeles, CA: Statistics and Analysis
How much income do you need to make to afford Los Angeles rent?
Many financial advisers and the Department of Housing and Urban Development recommend that your rent-to-income ratio should be no greater than 30%. Meaning, your monthly rent should not exceed 30% of your monthly take-home pay.
Based on this recommendation, the average renter would need to make at least a six-figure income to afford to rent in Los Angeles. Below is a breakdown of the suggested net annual income needed for a 30% rent-to-income ratio in the seven most desirable LA neighborhoods:
|
Neighborhood |
Avg 2-BR Rent |
Required Annual Income (based on 30% rent-to-income ratio) |
|
Beverly Hills |
$4,106 |
$164,240 |
|
Culver City |
$3,919 |
$156,760 |
|
Echo Park |
$3,345 |
$133,800 |
|
Los Feliz |
$3,404 |
$136,160 |
|
Silver Lake |
$3,602 |
$144,080 |
|
Venice |
$4,522 |
$180,880 |
|
West Hollywood |
$3,354 |
6: Studio Apartments in Los Angeles, CA: Rent Statistics and Trends
In May 2023, the average rent price for a studio apartment in Los Angeles was $1,997. Studio apartment rents increased by 2% since May 2022.
A breakdown of Los Angeles apartment rent prices in May 2023:
- The average rent price for a studio apartment in Los Angeles is $1,997
- The median rent price for a studio apartment in Los Angeles is $2,054
- The 25th percentile rent for a studio apartment in Los Angeles is $1,595
- The 75th percentile rent for a studio apartment in Los Angeles is $2,286
7: One-Bedroom Apartments in Los Angeles, CA: Rent Statistics and Trends
In May 2023, the average rent price for a one-bedroom apartment in Los Angeles was $2,439. One-bedroom apartment rents increased by 13% since May 2022.
A breakdown of Los Angeles apartment rent prices in May 2023:
- The average rent price for a one-bedroom apartment in Los Angeles is $2,439
- The median rent price for a one-bedroom apartment in Los Angeles is $2,351
- The 25th percentile rent for a one-bedroom apartment in Los Angeles is $1,975
- The 75th percentile rent for a one-bedroom apartment in Los Angeles is $2,800
8: Two-Bedroom Apartments in Los Angeles, CA: Rent Statistics and Trends
In May 2023, the average rent price for a two-bedroom apartment in Los Angeles was $3,391. Two-bedroom apartment rents increased by 19% since May 2022.
A breakdown of Los Angeles apartment rent prices in May 2023:
- The average rent price for a two-bedroom apartment in Los Angeles is $3,391
- The median rent price for a two-bedroom apartment in Los Angeles is $3,196
- The 25th percentile rent for a two-bedroom apartment in Los Angeles is $2,651
- The 75th percentile rent for a two-bedroom apartment in Los Angeles is $3,711
9: Three-Bedroom Apartments in Los Angeles, CA: Rent Statistics and Trends
In May 2023, the average rent price for a three-bedroom apartment in Los Angeles was $4,051. Three-bedroom apartment rents increased by 14% since May 2022.
A breakdown of Los Angeles apartment rent prices in May 2023:
- The average rent price for a three-bedroom apartment in Los Angeles is $4,051
- The median rent price for a three-bedroom apartment in Los Angeles is $3,995
- The 25th percentile rent for a three-bedroom apartment in Los Angeles is $3,465
- The 75th percentile rent for a three-bedroom apartment in Los Angeles is $4,800
10: Los Angeles, CA Rent Statistics: Conclusion
As the data shows, apartment rent prices in Los Angeles have increased over the past year. With mortgage interest rate increases, low supply of housing, and high demand for the Los Angeles area, it will be an interesting rental market to watch moving forward.
Should I invest in Los Angeles real estate?
There is no straightforward answer because no two real estate investors are alike. We suggest that you clearly define your investment goals and criteria, understand your own personal investment risk tolerance, and continue to monitor the housing market and rental trends in Los Angeles moving forward.
Should I rent an apartment in Los Angeles?
Los Angeles is one of the most active and competitive markets in the U.S. Therefore, it’s also one of the most expensive cities to live in. If you have your sights set on living in Los Angeles and your income affords you the opportunity to live there, by all means go for it. Remember to try to follow the recommended rent-to-income ratio of 30% and you can always get a roommate or check out some of the more affordable neighborhoods previously mentioned to lower your living expense.
Where can I check Los Angeles rent prices?
Check rent prices in your market
Make data-driven real estate decisions with Rentometer - the fastest way to check residential rent prices in the U.S. Try us for free today!