< The Latest 2025-04-15T14:27:09+0000
The Pasadena Star-News | Tue 04/15 07:24am PST | Jonathan Lansner
Southern California tenants are seeing rent inflation rising once again.
My trusty spreadsheet looked at the rent slice of the Consumer Price Index for March in three local markets: Los Angeles and Orange counties, the Inland Empire, and San Diego County. This rent metric is different than most as it’s based on polling of tenants in various housing – from big complexes to homes and condos – asking consumers what they pay their landlord. Other industry yardsticks tend to focus on the costs of new leases.
The average Southern California renter saw costs rise at a 5.2% annual rate in March – that’s up from the recent low of 3.8% in December 2024. Still, it’s an improvement from the pandemic era’s 9.7% peak in April 2023. And let’s not forget the long-run pain for tenants: rent is up 36% in six years.
Local rent hikes were cooling in late 2024 as a rush of new supply created competition among landlords. But that building boom has slowed.
Then came January’s wildfires, destroying 12,000-plus structures in Los Angeles County, further amplifing the supply shortfall. Plus, landlords face their own rising expenses – from pricier insurance to costlier staffing and repairs.
Yet demand stays strong as rentals are the low-cost housing option. Only 14% of Southern Californians could afford to buy a house at year-end 2024, according to the California Association of Realtors.
Here’s how rents swung in local markets …
L.A.-Orange County: 4.9% rent inflation in year ended in March, up from November 2024’s 4.5% low but down from 5.8% recent peak in July 2023. Last six years? Up 26%.
Inland Empire: 4.9% inflation, up from October 2024’s 2.4% low – but off from 12.2% high in April 2023. Last six years? Up 44%.
San Diego: 5.9% inflation, up from December 2024’s 4.3% low – but off from 11.5% high in April 2023. Last six years? Up 37%.
By the way, rent hikes are still cooling nationally. The 4% increase in March was the smallest since the pandemic era’s 8.8% peak in March 2023. But the nation’s tenants have seen rents jump 32% in the last six years.
Jonathan Lansner is business columnist for the Southern California News Group. He can be reached at jlansner@scng.com