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Santa Clarita Valley (credit:Flickr and iStock) 

Average rents prices rose 6.6% to $2,461 a month, according to a Rent Café report

LA Rent Prices Keep Rising Due to Low Inventory and High Demand

Housing in Los Angeles remains at a premium and rent prices keeps rising. Over the last year, the L.A. area reported the third highest rent price increase in the nation, according to a recent report.

Average rents prices increased 6.6 percent to $2,461 per month, according to Yardi Rent Café numbers, reported by Globe Street. That growth in the region was helped along by rapidly rising rents in some submarkets, including Lancaster and Santa Clarita, both north of the San Fernando Valley.

Renters are chasing affordability. Those cities have 20 percent more renters than were reported in 2011, and in Lancaster’s case, rents are still about half the L.A. average. Santa Clarita, meanwhile, saw the top multifamily sale of the year when IMT Capital paid $167 million for an apartment complex there in September. Low housing inventory overall also contributed to pushing prices higher. 

Metro L.A. saw a 23 percent drop in the number of units projected to be completed in 2018, according to Yardi’s Adrian Rosenberg. Occupancy is around 96.7 percent, and inventory is down 14 percent compared to the same time in 2017.

But low unemployment and relatively strong wage growth also pushed up rents. Sectors including professional and business services, and hospitality grew by more than 3 percent year over year. In the tech sector, major companies have flocked to L.A. to escape the high commercial rent prices in other established tech hubs. The workforce has followed.

Tech industry employment in L.A. grew by 14.7 percent from January 2016 to December 2016. That increase has added 10,200 new high-tech jobs.

Rent price growth slowed in some major markets across the country in 2019, but in L.A. it remained high through the summer. That slowed a bit in the fall in L.A. as new inventory came online, but the market could tighten again as the pace of building slows, experts said. 

*Sources: TheRealDeal.com, Globest.com 

Mark Your Calendars 

Until January 6th - Enchanted Forest of Light - Descanso Gardens @ 5:30pm - 8:30pm 

Until January 6th - Moonlight Forest Lantern Art Festival - The Arboretum, Arcadia @ 5:30pm - 10:00pm

Until January 6th - Festival of Lights at the Mission Inn - The Mission Inn Hotel & Spa @ 4:30pm

Until January 6th - LA Zoo Lights - Los Angeles Zoo, Griffith Park @ 6:00pm 

Until January 21st - Holiday Ice Rink Pershing Square - Pershing Square Park Downtown LA @ various times 

January 5th, 12th, 19th, & 26th - Family Nature Walk - Eaton Canyon Natural Area Park & Nature Center @ 9:00am - 11:00am 

January 5th, 12th, 19th, & 26th - Pasadena Farmers Market - Victory Park @ 8:30am - 12:30pm 

January 6th - 11th - Pasadena Cheeseburger Week - Participating Restaurants Across Pasadena 

January 12th - Family Bird Walk at The Arboretum - LA County Arboretum Rotunda @ 8:00am- 10:00am 

January 14th - Japanese Teahouse Tours - The Huntington Library, Art Collections, and Botanical Gardens @ 11:30am - 3:30pm 

January 20th - 2019 Pasadena Half Marathon & 5K at The Rose Bowl - Rose Bowl Stadium @ 7:00am 

January 20th - Bird Walk - Eaton Canyon Natural Area Park & Nature Center @ 8:00am 

January 23rd - Fortified Wines From Around the World - The Huntington Library, Art Collections, and Botanical Gardens @ 5:00pm - 7:00pm 

January 24th - Caltech Campus Architectural Tour - At the entrance to the Athenaeum @ 10:30am 

January 25th - 26th - Caltech Chamber Music Ensembles - Dabney Hall @ 8:00pm 

January 27th - Caltech Chamber Music Ensembles - Dabney Hall @ 3:30pm 

January 28th - BacchusLIVE: Alfredo Rodriguez - Bacchus Kitchen @ 6:00pm 

January 31st - Tai Chi at the Arboretum - LA County Arboretum @ 9:00am - 10:30am 

*Sources: PasadenaNow.com, TimeOut.com, PasadenaRestaurantWeek.com, Caltech.edu

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Contract Corner 

Nails in the Walls During a Transaction

When a seller has many pictures and paintings on the walls of their home, along with nails and "fixtures", what is the best course of action according to the Residential Purchase Agreement (RPA)? 

Ultimately, the seller should leave the nails in the walls. Paragraph 8B(1) of the RPA states that all existing fixtures are included in the sale. “Fixtures” are legally defined as things affixed to land when “imbedded in it, as in the case of walls” (Cal. Civil Code section 660). Nails do in fact fit that description.

However, if Paragraph 8C is checked, it requires “holes or other damage to be repaired, but not painted.” This provision does not pertain to artwork, it only pertains to brackets for audio and video components, and items secured to the real property for earthquake purposes. In the grand scheme of a sales transaction, nails in the walls and brackets are minute details. However, if this section of the sales contract is not carefully noted it can prove to be problematic. 

Navigating through the labyrinth of details and information of a transaction is exactly why you, savvy buyers and sellers, need an experienced team. The SARKISSIAN + PERERA GROUP is here to help guide you through this process and ensure that you achieve all of your real estate goals! 

© 2018 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH Affiliates LLC. Any unauthorized reproduction or use of this material is prohibited. This information is believed to be accurate as of January 5th, 2019. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals. BHH Affiliates LLC and BHHSCP do not guarantee accuracy of all data. Information has been obtained from various sources and will not be verified by broker or MLS.

SARKISSIAN + PERERA GROUP

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