Following seven months of price decreases — the likes of which had not been seen in over a decade — one-bedroom median rent in Los Angeles remained unchanged from October to November.
According to the latest report from rental platform Zumper, one-bedroom prices plateaued in November, totaling $2,000 for the typical apartment. Compared to the same period last year, asking rent is down 9.5 percent, or a difference of $300.
Meantime, two-bedroom median rent fell 2.2 percent month-over-month to $2,720. Prices for two-bedroom apartments have plummeted 12.3 percent since November 2019, a savings of $540.
“Price decreases slowed on average for the 3rd consecutive month in expensive markets, indicating that prices in these cities may be approaching a floor and stabilization could happen in the near future,” wrote Neil Gerstein, a Zumper data analyst and economic researcher.
With the exception of Los Angeles, the seven priciest metropolitan areas for renters all experienced monthly price drops between -1.0 and -3.6 percent. However, the declines were less pronounced than in months past, particularly the slow summer season.
Gerstein added that price changes in these cities “were on average 0.8 percentage points higher” than October, meaning November had the “highest average growth rate change” in 2020.
A handful of rental markets outside of Los Angeles have bucked this trend, recording annual price gains for one-bedroom apartments. These included Anaheim (+2.5 percent), Santa Ana (+2.4 percent) and San Diego (+0.6 percent). With the freedom to work remotely, many Angelenos are choosing to make the move to neighboring metro areas that offer more living space and cheaper monthly rent.
The Zumper report calls these hot rental markets “Pandemic Destination Cities,” and identifies Providence, RI; Cleveland, OH; Indianapolis, IN; Durham, NC; Newark, NJ; St. Petersburg, FL; and St. Louis, MO as high growth cities where one-bedroom apartment prices have surged more than 18 percent since March.