Los Angeles home prices hit record highs last month while median rents continued on a downward trend.
The median rent for a one-bedroom apartment declined for the fifth consecutive month, amounting to $2,080. That’s according to a new report from apartment rental platform Zumper, which suggests that prices have plummeted 8.4 percent over the same period last year.
From July to August, the median rent for a one-bedroom apartment dipped 2.8 percent, representing a savings of $60 per month. LA’s once-booming luxury rental market has recorded the steepest price drops as renters trim their budgets and common amenities remain closed, notes a recent article from the Los Angeles Times.
The median rent for a two-bedroom apartment tumbled 8.6 percent year-over-year in August to $2,880. Compared to the previous month, the median price decreased by 3 percent or a difference of $90.
“Nine out of 10 of the nation’s most expensive cities accelerated their year-over-year declines in 1-bedroom median rent compared to last month,” reads the report authored by Neil Gerstein, a data analyst and economic researcher.
“Despite significant price drops sustained thus far, the nation’s most expensive rental markets do not appear to be slowing down in their decline as COVID-19 continues to keep Americans moving out of pricey, urban centers.”
More affordable markets outside of Los Angeles County actually saw median prices increase in August. For example, one-bedroom apartment rents in Bakersfield soared 11.8 percent to $850 per month. In suburban markets like Long Beach and Santa Ana, median one-bedroom rents remained relatively stable, inching up 3.2 percent and 0.6 percent, respectively.