The Los Angeles Rental Market Trend Report analyzes four key data points: active listing growth, renter lead growth, average renter leads per property, and the average rent price for two-bedroom listings.
Active Listings – Our first data set is the month-over-month change in the total number of active rental listings advertised on the TurboTenant platform. Factors such as seasonality will impact this number, with the rental season peaking January through August. Due to the pandemic, eviction moratoriums, and stay-at-home orders, more month over month fluctuations were reported in nearly every market we analyze. Traditionally, this data point helps us gauge the rental supply in each market and provides a more in-depth seasonality analysis. Through the lens of 2020, inconsistencies in baselines were noted. As we compare 2021 to 2020 we will work to glean insights into if and when the rental market is beginning to normalize and mirror moving and inventory trends of years past.
Renter Leads – Our second data set is the month-over-month change in the total number of renter inquiries to a TurboTenant property listing. This data point is the demand side of our supply data point above.
Average Number of Renter Leads Per Property – Our third data point brings together the first two to give us a better understanding of the competitive landscape in each location. We compare the total number on a month-over-month basis.
Average Rent Price – Our fourth data point is the average rent price for a two-bedroom listing. Our analysis begins in January of 2020 and will continue throughout 2021. We want to understand how factors such as outmigration, changes in remote work and school, and eviction moratoriums impact rent prices in any given market.
Los Angeles Rental Market Trend Analysis
The first half of 2020 did not see any significant gains or losses in active listings and mostly corrected itself month-over-month. Listings spiked in June and October and held steady through the end of 2020. Listings for the first two months of 2021 reported less volatility than 2020, and have started to increase as seasonal trends would predict.
Renter Leads and Average Leads Per Property
January of 2020 posted strong demand in Los Angeles with a 142% from December of 2019, and nearly 25 leads per property reported. Demand waned for the rest of the quarter and picked back up in May with a 64% increase, and no significant losses reported until September. October boasted the biggest increase in demand with a 166% increase month-over-month. Almost half of that gain was lost throughout the end of 2020 and continuing into 2021. Again, a potential indicator that city and urban out-migration may be playing a part in rental demand.
Year-over-year the average rent amount for a two-bedroom listing is down over $100. Decreases have been reported for all of 2021. July of 2020 posted the highest amount which correlates with demand at the time. As that demand began to fall off, rent prices followed with March of 2021 reporting the second-lowest average rent amount at $2,212 in the 15 month reporting period, second to November at $2,077.
We will continue to update this data every month. If you have data requirements that are outside the scope of this article, please email [email protected]. We have ongoing data collection and are happy to supply another data set if it is available. Check out all of our COVID-19 landlord resources here.
If you are in the process of filling your properties, TurboTenant can help streamline your rental process with easy and free online rental applications as well as thorough tenant screening so you can find the best renter for your property.