Rents decline in South California due to eviction
Last year, apartment rents fell in Southern California as more tenants were evicted due to the inability to pay rents mainly owing to lost jobs.This stark reality came out in the annual report published by the University of Southern California.The study covered Los Angeles, Orange, Riverside, San Bernardino and San Diego counties in California.
As per the report, the average rent in LA declined by four percent in 2008 due to increased supply as well as lesser availability of tenants with the ability to pay rent. 41,000 people moved out of apartments as against just 29,000 over the past five years. Landlords have resorted to lowering rents or giving concessions in order to ensure that their units are not vacated.
As per the report, prices may stabilize in 2010 in the wake of overall economic recovery. However, the rents may remain low in 2009.