After living in the Inland Empire city of San Bernardino for nearly a year, I'm ready to return to my long time "stomping grounds" of Compton and Long Beach in Los Angeles County. Over recent months in my Street Talk columns, I have pointed-out the tremendous increases in the number of residential and commercial properties that are vacant and for rent throughout Southern California.
The high number of rental and commercial vacancies is an indication of tough economic times that have left thousands of people jobless and unable to pay their mortgages. Some have joined the ranks of the homeless, and many others are returning to the residences of their parents and grandparents, or they're doubling up in apartments or homes with family members and friends.
According to the annual USC Lusk Center Casden Forecast, "41,000 Los Angeles residents left their apartments last year, mostly in search of cheaper housing options or more job opportunities. Despite boasting a population of 9 million, these 41,000 people had a profound effect on the county's rental market."
The Casden Forecast further reports that the "unemployment rates are significantly impacting Southern California's rental markets and Californian's are feeling the pinch as the recession and skyrocketing unemployment rate cause renters to look elsewhere."
Among the hardest hit areas of Southern California are Los Angeles Riverside and San Bernardino counties. "Unemployment in LA County is almost 12 percent. Some residents are also leaving the area and moving to other jobs," the Casden Forecast revealed.
A year ago, before I moved from Long Beach to the city of San Bernardino, two bedroom apartments or duplexes were renting between $1000 and $1200 a month. Although rental rates may have been reduced in some areas of Los Angeles County, I was shocked to learn that the average cost for a one bedroom apartment was between $1100 and $1200 in many inner city communities. A two bedroom apartment or duplex ranged from $1300 to $1400 a month or more.
To move in to many of these vacancies requires paying first and last month rent plus a security fee, raising the average cost to move to about $3,000. A tenant also has to pay utilities including electricity, gas and telephone bills — and don't leave out charges for computer and cable hook ups. So the overall costs may easily range between $1,700 and $2.000 per month to find a decent place to live.
As I learned last week when I called rental property owners and managers, it seems to me that Los Angeles County cities might still be posting some of the most expensive rents in the country.
"The average cost for a one-bedroom apartment at the end of last year was $1,397 a month, with rents reaching significantly higher levels in some of the more affluent regions of the county, including the Westside communities of Santa Monica, Beverly Hills, Westwood and Brentwood," explained Delores Conway, Casden Forecast Director.
Although I am moving to Los Angeles County, the status of other Southern California rental regions is mixed, according to the Casden Forecast. The region's rental market is also being hit by the large number of foreclosures available throughout Riverside and San Bernardino counties.
"The substantial volume of foreclosures in the Inland Empire is drawing some former renters into these two counties as they buy affordable houses with low mortgage rate loans," Conway said. "We have seen home sales pick up in this area this year and many first-time homebuyers, who were former renters, are buying homes."
In my view from the streets, due to the tremendous increases in the cost to live in rental properties, President Obama's administration needs to take action to bail-out the hundreds of thousands of Americans who need subsidies, grants or tax credits to afford to pay apartment, home and commercial rental properties costs.
Ronald Ellerbe is editor of Hub City News and columnist for LA Beez.
Photo of Riverside, CA from Wikimedia Commons; story photos by Ron Ellerbe, Hub City News
This is just absolutely ridicules for rent to still be this high in some parts of California. I had to turn down a job in Culver City because it didn't pay enough to even afford to rent in that area. I am a single woman and I am not about to give up safety just to be able to afford an apartment where I can feel safe.
If landlords would come down on their rent to where a single income person could afford the rent, than maybe they could fill their vacancies. Instead they want to be greedy and raise rent to make up for the loss, it just doesn't make any sense to me.