According to the USC Casden Forecast for 2014, rents across Southern California will continue to rise over the next two years with project growth of 8.6% in Orange County.
Vacancy rates have been decreasing in LA, Orange County, the Inland Empire and San Diego for the past year so it’s no surprise that they will continue to rise over the next two years.
USC cites the recovering economy as one of the reasons for the rise in prices. This year the California economy has maintained strong momentum; unemployment fell 8.5 percent from last year, and the state’s GDP rose 2% in 2013.
However, though the economy is improving, renters’ incomes are at a stand still. While occupancy rates are moving in the right directions, affordability is worsening.
Here’s a breakdown of projected rent increases by mid-2016:
- LA County – 8.2% rise to an average rent of $1,856 a month
- Orange County – 8.6% rise to an average rent of $1,806 a month
- Inland Empire – 9.9% rise to an average rent of $1,246 a month
Start Reviewing Your Options
So what can you do to combat the rising rent? Nothing. But you can start saving for a home of your own because the facts are this: mortgage payments may be cheaper than your rent. Knowing the market and your options is critical to making the smartest financial decision for your future.
Before rents start rising – and interest rates too – let’s review your options.
20331 Bluffside Circle Unit 207 is a studio apartment located in Huntington Beach just down the street from the sand, the HB pier and Main Street. Listed at $269,000, with 10% down and a 4% interest rate on a mortgage, your monthly payment would $1,611 – lower than the current average rent of $1,663 and nearly $200 cheaper than projected averages.
Could it be the right time for you to become a homeowner?
If you like this condo, or are interested in other properties in Southern California, talk with a real estate professional. You can search for an area specialist online or let us connect you with a top agent in your area.
