Roughly one-third of Southern California landlords are trying to fill their rental units by using special deals this summer.
My trusty spreadsheet dug into Zillow’s July rent report, which shows how many rental listings on its site come with concessions — discounts used to attract new tenants, ranging from free months of rent to breaks on fees, parking, or utility costs. Zillow’s pricing stats for 50 U.S. metropolitan areas are based on indexes that track what landlords hope to get for all rental types and sizes. Its affordability measure also compares rents with local median household incomes.
In Los Angeles and Orange counties, 31% of rentals came with some kind of discount, ranking the region 32nd out of 50 big metro areas. Even with those deals, rents still climbed 1.5% over the past year, the 29th-biggest jump in the nation.
Still, it’s not exactly cheap. Zillow pegs the average rent in L.A. and Orange counties at $2,944 per month, the sixth-highest in the country. That price eats up 34% of local incomes, the third-highest share nationwide.
In the Inland Empire, 30% of landlords are offering discounts, ranking the region 34th out of 50. Rents there jumped 2.5% in a year, the 21st biggest increase. Typical rents at $2,547 a month — eighth-highest in the U.S. — would eat up 31% of incomes, the fourth-highest share.
Now, San Diego County landlords are a bit more generous, with 38% offering discounts. That’s 27th out of 50 metros.
Rents in San Diego rose 1.8% over the year, the 26th biggest jump. At $3,008 a month, this metro is the nation’s fifth most expensive place to rent. That cost eats up 31% of local incomes, the fifth-worst affordability.
Numerous landlords face increased competition to fill vacant units because a modest burst in new construction has given renters more options. Plus, demand may be weak as a shaky economy convinces some folks not to seek their own place.
Across the country, landlords are even more likely to offer a deal, with 40% of U.S. listings offering some kind of discount.
Still, rents rose 2.3% over the year to $1,962 a month. That’s only 27% of U.S. incomes.
Rent’s extremes
Look at the nation’s highs and lows for the month:
– Concession share: Charlotte at 68% to 8% in Buffalo.
– One-year rent swings: San Francisco’s 10% gain to a 1.8% drop in San Antonio.
– Monthly rent: San Jose at $3,782 to $1,357 in Louisville.
– Rent as a share of income: New York at 41% to 18% in Raleigh and Salt Lake City.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
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