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Per Neil Shekhter the Rent in LA May Finally be Coming Down

ACCESSWIRE

By NMS Properties, Inc.

LOS ANGELES, CA / ACCESSWIRE / February 25, 2018 / The average monthly rent in Los Angeles County will rise approximately three percent in 2018. This amounts to a little under $1,850 in monthly rent on average.

Last year saw a rise of approximately 3.2 percent. This is in stark contrast to three years ago when Los Angeles County rents rose six percent.

Many major real estate analysts cite a rise in new home construction as a drag on the rise in rent in recent years.

Since 2013 in Los Angeles County, close to 30,000 units were built. Whereas as in the four years prior to 2013, only a little over 10,000 units were built. Reputable real estate forecasters project more than 20,000 new units will be delivered by 2020 in Los Angeles county further depressing rent in the near term.

While the new supply will depress the rise in rent, will it be enough to spur a drop in rent prices? Many professors of both real estate and finance at the most prestigious California state institutions seem to think so. Some project that by approximately 2020 rent prices will begin to bottom or lower. However, these same professors attribute the impending drop in rental prices to the fact that these prices were already so grossly overpriced when compared to wages. At the current rate of rental prices, many people are spending an unsustainable 50 percent of their income on rent.

When renters spend more than an equivalent of 30 percent of their income on rent, in Los Angeles County, they are considered to be cost burdened. In Los Angeles County alone, well over a majority of their citizens fit the designation of being cost burdened by rent, and an additional one-third of the county’s residents spend a whopping 50 percent of their incomes on very high rent.

The sobering news is that even if rent prices find a floor, they are still much too high for a majority of its residents, and this is not likely to change unless the need for affordable housing is outlined and addressed.

A large contributing factor in the continued steep rental prices in Los Angeles County is that a high percentage of the new construction is directed at a very high-level wage earner, and in many cases, these prices are exclusive to any other level of the renter.

In Downtown Los Angeles, where a large component of new construction is being installed is close to a thousand dollars more in rent costs monthly than other areas in Los Angeles County. This construction is said to target those that make over $100,000 a year or more with amenities that are being provided in the high-end housing projects being provided like high-end pools and gyms.

However, there are some official policies being enacted in a county and state government that is designed to address the lack of affordable housing starts in Los Angeles County. Additionally, there are certain monetary commitments that are being enacted upon new high-end housing in the county to ensure affordable housing is addressed.

From Los Angeles to downtown Santa Monica, NMS offers apartment living in some of the most desirable locations in the Los Angeles area. Your friends will be envious of your Los Angeles apartment complete with upscale amenities and finishes. Some communities offer sophisticated amenities including swimming pools, fitness centers, and concierge services. NMS apartments in Los Angeles feature modern kitchens, walk-in closets, expansive floor plans, stainless steel appliances, deluxe flooring, and private balconies. Choose from studio, one, two, or three-bedroom apartment homes.

Launching NMS Properties in 1988, Neil Shekhter assumed the role of CEO in January 1995. The real estate management company focuses on multi-family and mixed-use properties in the Greater Los Angeles areaF and in Santa Monica. At present, NMS properties manage more than 70 properties.

Neil Shekhter – Founder and CEO of NMS Properties
Apartments For Rent In Los Angeles NMS Residential: http://www.nmsresidential.com
NMS Properties – Real Estate Management Firm: http://www.nmsproperties.com
Contact Information: info@NeilShekhter.com

SOURCE: NMS Properties, Inc.

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