Foreclosure of Apartments is Causing fall in Rental rates in Los Angeles

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Foreclosure of apartments is causing fall of rental rates in Los Angeles region. During the beginning of this year although the speed of foreclosures had somewhat slowed the staggering number of apartments that had been foreclosed upon from 2009 to 2008 is contributing to influence the rental rates in this area.

The University of Southern California Lusk Center conducted a survey of conditions of real estate. According to it, 3.5% drop on an average is forecasted in rental rates this current year in Los Angeles County. As compared to the counties of Inland Empire, San Diego and Orange, this survey showed that the largest drop has been for Los Angeles County.

The foreclosure in Los Angeles region continued to increase touching record figures. The average rent of apartment fell by 10% to touch $1,654. In 2008 the average rate noted was $1,836. In 2009 the localities in downtown Los Angeles the average apartment rents fell by 5.8% compared to that of 2008. After falling the reading was $1,488.

Despite this, the majority of the landlords of Los Angeles are sure that soon the rents will start increasing. They are sanguine that the rent rates in the downtown regions will specifically go up in the not too distant future. They are hoping that the foreclosed units in the downtown regions will be taken up by the housing market as there has been a spike in rates of occupancy in the estates in the downtown localities of Los Angeles.

The instances of Factory Place Arts, Emil Brown Lofts as well as Brick Lofts are being citied. They have achieved success in renting out at a handsome rate their apartments. Emil Brown leased out their units at rates ranging from $1,200 to $3,000. In other estates the rates of rentals are about the same ranging within $1,200 and $2,800.

Another good sign is that owners of properties are no longer offering discounts. They did this in the past so as to compete with the low prices the banks were offering in the past few years.

In general, in California foreclosures activity has decreased during the past few months and this has helped to stabilize the rental market rates. The landlords owning apartments in inner city regions are continuing to struggle with rental as this place was the worst affected by the foreclosure crisis as compared to the downtown neighbourhood.

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