Rents have risen in 7 out of 10 Southern California cities compared to a year ago. While increases were particularly sharp in Orange County and the Inland Empire, areas such as Los Angeles saw unexpected declines.
According to the latest report from real estate data firm Apartment List, rental prices in 35 out of 52 surveyed Southern California cities (67%) increased year-over-year in October. The proportion of cities experiencing rent hikes jumped by 30 percentage points in just six months, up from 37% in April.
Laguna Niguel in Orange County recorded the largest increase, with rents surging 7.2% over the past year. Monthly rents in this area averaged $2,787 for a one-bedroom and $3,163 for a two-bedroom. Newport Beach also saw a 6.1% increase, followed by Brea (4.4%), Chino Hills (3.9%), Moreno Valley (3.8%), and Fullerton (3.1%).
Conversely, rental prices dropped in several Los Angeles County cities. Monrovia experienced the steepest decline at 6.5%, followed by Santa Monica (-5.2%), Calabasas (-4%), and Glendale (-2.2%).
The City of Los Angeles also saw a 0.6% drop compared to the previous year, with monthly rents averaging $1,864 for a one-bedroom and $2,377 for a two-bedroom apartment.
Although rising rents are becoming more common across Southern California, a clear upward trend has not yet materialized nationwide.
The national median monthly rent in October stood at $1,384, marking a modest 0.1% ($1) increase from a year ago. While this year-over-year increase is the first in about three years, rents actually dropped 0.3% compared to September, largely driven by seasonal factors as autumn moving demand slows down.
However, the likelihood of future rent increases is growing. Although more than 600,000 multi-family housing units, including apartments, were newly supplied nationwide in 2024, new construction pipelines are now shrinking.
The national multi-family rental vacancy rate also dropped from 7.3% in February to 7.0% in October. As available vacant units decrease, the need for landlords to cut rents is gradually diminishing.
This does not mean competition for tenants has entirely disappeared. Last month, 32% of rental multi-family complexes nationwide offered concessions equivalent to a month’s free rent or more to new leaseholders.
Apartment List forecasts that mounting upward pressure on rents will intensify next year as new housing supply dwindles and vacancy rates decline further.
