REAL ESTATE NEWS — Many Downtown area homeowners received a post card recently from a loft specialist real estate company stating that rents are declining. Because the L.A. Loft Blog is the authority of Downtown Los Angeles real estate, we’re going to help determine if this is true. Are rents really going down in Downtown L.A.? #rentprice #dtla
RENT PRICES
The post card fails to include the exact beginning and end period, and also does not mention the comparison period. The statistical statements therefore are not complete, and so it’s like saying a car is going 55 or 75 without saying miles per hour or kilometers per hour etc. The same is true when talking about rental rates. Panic selling is rarely a good idea, so Downtown home owners and landlords want to know the real details of what is happening to the DTLA rental market.
To know the real state of rents in Downtown, we need to look directly at the MLS Multiple Listing Service data, and compare the specific time periods. The generally accepted time period to observe in real estate is the past 6 months (the recent market period), and then to compare that to the same 6 month period in the years earlier.
We’re not going to use average because the MLS data contains errant massively incorrect data. Median is more accurate (the middle number), so lets take a look at the real median rental price for those specific periods:
2015 $2,550 Downtown LA Rents 2015 (pdf)
2016 $2,740 Downtown LA Rents 2016 (pdf)
2017 $2,750 Downtown LA Rents 2017 (pdf)
So looking directly at the real MLS data, we can see that rents are generally not going down, but the rate of increase has most certainly gone down. A stabilization has occurred. No need to panic. In fact, the opposite is true. The right amount of new apartments have been built so that the thousands of new Downtown residents might not need to encounter huge rent increase in the near future, and landlords will likely not be able to raise rents dramatically. Downtown Los Angeles landlords will also not likely need to implement the 65% rent reduction that the recent postcard seems to suggest.
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Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.