Did you know apartment rents are falling?
Landlords are begging for renters and the apartment rent are falling. Rents have been dropping for the last 5 quarters in Orange County. The apartment rent is down 6.7 percent and is still falling. We are seeing the lowest rents in the past 3 years.
The biggest decline was in Lake Forest, where the average rent fell 11.4 percent . The smallest decrease occurred in Newport Beach which had a 2.2 percent decrease.
The reason for the drops in the rental market is unemployment and the number of people making less money than in the strong markets of 2006 and before.
It is not just apartment rents that are falling there is also a high amount of vacancies. Therefore, concessions are being made to entice new renters to a complex. Things like free rent for a period, free application fees, lower deposits and gifts like free plasma TV's.
Comments(6)