Rents across the US rose more than home values in April "for the first time in years," according to Zillow—while sale prices have gone up and down, rents have only risen over the last several years. In the Los Angeles metro area, rents were up 5.6 percent in April over last year (to $2,498), by Zillow's data, while home values were only up 3.1 percent (to $534,300). In just the city of LA, rents were up 7.8 percent to $2,573. Mid-Wilshire led the pack with a nutso 30 percent increase, followed by Arlington Heights at 26 percent; lots of other areas—including Koreatown, Westlake, and Mid-City also all saw double digit rent increases. (All the biggest depreciators in the area were in Orange County.)
With rent way up and housing just a little up, plus low interest rates, Zillow's chief economist says, no duh, buying is the way to go. Just one problem: "it will be increasingly difficult for many renters to realize these benefits as this country's growing rental affordability crisis continues to worsen. More income going to rent means less going to savings for a down payment and other costs, keeping renters renting longer and feeding into the high demand that is contributing to rising rents in the first place."
· Rents Gallop Past Home Values in April [Zillow]
· LAX-Adjacent Rents Now on Par With Beverly Hills Rents [Curbed LA]