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Rents are up across the country and you are right it's 20% in LA according to rent.com. However equating rental prices going up 12% in the past 12 months with

Rents are up across the country and you are right it's 20% in LA according to rent.com. However equating rental prices going up 12% in the past 12 months with "people coming roaring back" isn't really correct. I mean inflation is up >7% in the last 12 months. I wouldn't say NYC has had a huge roaring back of people...but rent is up 39% in the last year...triple what SF saw. You can have rental prices increase and that doesn't necessarily mean an increase in demand...there are many external factors (supply shrinking, adjustments to account for lost rent in the pandemic, inflation, etc).

gamblor956 4y ago
You're just ignoring contrary data to fit your viewpoint. As I've pointed out many times, the apartment buildings in my neighborhood have waitlists for potential renters, and that's despite 20% YoY rent increases (or 16% rent increases, comparing pre- and post-COVID). Average vacancy is less than 1%, and that is true of all of the desirable neighborhoods in LA (of which there are too many to mention). Your own citation supports the rent increase. These rent increases are not due to supply shrinking (there are thousands more rental units on the market now than before COVID), adjustments for lost rent in the pandemic (that's not how rental pricing works, landlords always charge market rate), and inflation (rent in these neighborhoods increased more than twice as much as inflation). At this point, having been confronted by data showing that your understanding is wrong, you need to point to actual concrete evidence that your understanding is reasonable and not just vague insinuations.
- j_walter 4y ago
  My viewpoint is that there is not enough evidence to support what you are saying. Also "your neighborhood" isn't the same thing as an entire city so you can't extrapolate a single small data point into a city wide theory. I didn't see any of your data to show 16% increases of pre/post COVID...and the article is talking about SF which is 12% YoY. Landlords absolutely charge market rate...which includes baseline costs for running rentals and they had much higher than normal non-payment over the last 2 years which means their costs are up, therefore rents are up. I see no data to support your "thousands more rental units now"...in Portland they saw supply shrink over the past few years, and that was pre-COVID. With the recent increase in home values and 24+ months of potential non-payment a lot of small time landlords opted to sell (and we have a shit ton of people from California moving up here). https://assets.noviams.com/novi-file-uploads/mfnw/Files/article/Portland_Metro-Detached_Housing_Rental_Stock_Analysis-Updated_Report-3-25-22__002_.pdf https://assets.noviams.com/novi-file-uploads/mfnw/Files/arti...

gamblor956 4y ago

You're just ignoring contrary data to fit your viewpoint. As I've pointed out many times, the apartment buildings in my neighborhood have waitlists for potential renters, and that's despite 20% YoY rent increases (or 16% rent increases, comparing pre- and post-COVID). Average vacancy is less than 1%, and that is true of all of the desirable neighborhoods in LA (of which there are too many to mention). Your own citation supports the rent increase. These rent increases are not due to supply shrinking (there are thousands more rental units on the market now than before COVID), adjustments for lost rent in the pandemic (that's not how rental pricing works, landlords always charge market rate), and inflation (rent in these neighborhoods increased more than twice as much as inflation). At this point, having been confronted by data showing that your understanding is wrong, you need to point to actual concrete evidence that your understanding is reasonable and not just vague insinuations.

j_walter 4y ago
My viewpoint is that there is not enough evidence to support what you are saying. Also "your neighborhood" isn't the same thing as an entire city so you can't extrapolate a single small data point into a city wide theory. I didn't see any of your data to show 16% increases of pre/post COVID...and the article is talking about SF which is 12% YoY. Landlords absolutely charge market rate...which includes baseline costs for running rentals and they had much higher than normal non-payment over the last 2 years which means their costs are up, therefore rents are up. I see no data to support your "thousands more rental units now"...in Portland they saw supply shrink over the past few years, and that was pre-COVID. With the recent increase in home values and 24+ months of potential non-payment a lot of small time landlords opted to sell (and we have a shit ton of people from California moving up here). https://assets.noviams.com/novi-file-uploads/mfnw/Files/article/Portland_Metro-Detached_Housing_Rental_Stock_Analysis-Updated_Report-3-25-22__002_.pdf https://assets.noviams.com/novi-file-uploads/mfnw/Files/arti...