UCLA STUDY OF THE LA RENT CRISIS from Elaine Golden-Gealer

micro-livingLos Angeles is now the most unaffordable rental market in the country. It is also the metro area with the largest share of

renters vs. homeowners: While U.S. rentership has fluctuated around 35%, Los Angeles is at 52%.

This affordability crisis has deep roots. Los Angeles has been a majority renter city since 1970. And the disparity between renters and owners reflects an economic divide that has widened over decades.

Our studies show severe housing burden among poor renters has existed since 1970, and that during periods of

increasing inequality the burden has grown even more severe. Vacancy rates have risen only slightly – even dipping at

times when housing burden has increased. And renters are paying more for the same quality housing, suggesting that

neither market forces nor changing housing quality fully explain the increasing rents.

Altogether, the data show that the solution to this long-term crisis is to address its root causes – low incomes and high

rents – by increasing both renter earnings and affordable housing.

The Highest Rent Burden in the Country

In both the U.S. and Los Angeles, the median income of owners is more than twice that of renters. In the U.S., that large

gap is a new phenomenon, but in Los Angeles, owners have made twice as much as renters off-and-on since 1980.

“Los Angeles has a lower median income than New York or San Francisco but only a small difference in  median rents.”

Read more from a study at UCLA:

UCLA_Economic_Letter_Jimenez-Ong-Ray_8-05-14

Elaine                                                     
DRE #00598428
Senior Director, Coldwell Banker New Homes Division
With over 200 condominium, townhome and loft projects successfully marketed

“Fewer properties for sale with such remarkably low interest rates make it a great time to sell but a more difficult time to buy”

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