The results are in and we’ve put together the top ten leasing "hot spots" in Los Angeles for 2017.
Los Angeles County rental prices are expected to rise 2.9% during 2018, capping at $1,840. But how does this impact real estate agents, landlords, and property managers? Understanding the market intricacies of LA will make it easier to direct efforts when trying to fill vacancies or assist clients. That’s why we’ve laid out exactly which areas of Los Angeles County are worth focusing on.
Fastest Lease Turnover 2017 - Los Angeles County
Knowing which areas have the highest lease turnover can give a great idea of where the most activity is taking place. These markets all had lease listings that spent the shortest amount of time on the market before being successfully leased out. When properties don’t spend a long time on the market before being leased, it shows that there is a relatively high demand for properties in the area.
- Downey lease listings spent the shortest median time on the market before being successfully leased out. This may be due to the fact that the median one-bedroom rental price was as low as $1,100 during 2017!
- La Mirada, located in Southeast LA County, had lease listings with a median of 14 days on the market before being leased out. The city has long been considered a desirable place to live and the quick turnaround time of leases shows just how hot the market is.
- Alhambra leases spent the third shortest time on the market before being closed. Rental prices in Alhambra are right on par with County-wide averages which surely contributes to its desirability as a top-notch rental location
- Culver City has long been considered an up-and-coming spot to rent. With rent prices slightly above County-wide averages, the surrounding areas and proximity to recreational activities make it a highly competitive place to rent.
- Gardena rental properties spent the fifth shortest time on the market before being leased. Located in the South Bay area, the city had close to the lowest median rent price during 2017 going as low as $775 for a one bedroom.
Greatest Lease Volume 2017 - Los Angeles County
From looking at the areas with the highest volume of leases closed, one can draw two conclusions. First, that there is a large rental inventory in the area. Without it, there could never be that many lease agreements signed. Second and more importantly, it shows that this is a "high activity" area. That means people are likely moving in and out of the area. Not only is there a good amount of high-quality renters, but also there is likely a source of first-time home buyers.
- Long Beach is a very popular area with only slightly lower average rent than Los Angeles itself. The high rental volume is likely attributed to a combination of a high population and desirable atmosphere. According to the US Census Bureau, its population was nearly 500,000, making it the 7th most populous city in CA.
- Pasadena had the second highest number of leases closed in Los Angeles County coming in right around 615 for 2017. The host of notable events such as the Rose Bowl Parade, Pasadena is widely known for its shopping and dining scene. It also features an array of Victorian and Art Deco style structures that bring the city its flair.
- Santa Monica, despite its rent control, takes 3rd place for the highest leasing volume. The city has maintained its status as one of the most desirable places to live. This is clear due to the fact that average rent prices hover around $3,600 per month and saw an 8% increase from 2016 to 2017.
- Torrance had about 528 leases closed during 2017. This is despite the fact that 54% of all rentals fell between the range of $1,501-$2,000 per month.
- Arcadia boasted the 5th highest lease volume in all of LA County. The city had about 437 closed leases during 2017. This is impressive considering the fact that the Arcadia population is about 58,000, or about 10% of the population of Long Beach. This means Arcadia has one of the highest ratio of closed leases per resident.
Taking a look back at the results from 2017 can help piece together what 2018 may look like. What we’ve seen overall is that rental prices are largely continuing to grow at a rate faster than the inflation rate. Expensive as renting may be, simultaneously rising home prices in many parts of Los Angeles County make renting the only option for countless individuals and households. For those who work heavily with leasing already or who are looking to augment their income with more lease transactions or property management, this list can serve as a guide to understand the leasing hot spots throughout Los Angeles.
The data used to compile this list originates from publicly listed data provided by real estate agents, landlords, and property managers.