Posted Oct 29, 2014
Los Angeles: A Look into the Q3 Quarterly Report
See the latest Lovely data here.
There are many stereotypical rivalries that exist between popular West Coast cities, Los Angeles and San Francisco — Dodgers vs. Giants, tech giants vs. movie starlets, and the list goes on. One thing is for sure though, on a pure comparison of median rents, San Francisco blows Los Angeles out of the water. So doesn’t this mean Los Angeles renters are the ones winning? Well, at first glance, sure. When we looked a little closer though, we found that Los Angeles rents shot up three times as fast as San Francisco rents in Q3 2014. Los Angeles renters, looks like you might be in for another battle with your NorCal competitor.
Los Angeles Rents Shot Up Three Times as Fast as San Francisco
While Los Angeles median rent at $1,865 doesn’t create as much buzz across the nation compared to the astronomical rents in San Francisco, where the median was $3,488 in Q3, the rate at which Los Angeles rents are rising is giving the nation something to talk about. The median rent increase compared to the previous quarter was a more modest 3.9%, but the increase in median rent compared to the previous year was more than 10%. San Francisco experienced a year over year change of less than 3.5%. True, there’s reasonably less room for San Francisco to grow, but the difference is still quite shocking. In fact, Los Angeles experienced the highest rent this past quarter in nearly three years. If rent prices in Los Angeles continue to spike, they’ll be inching closer to San Francisco in no time.
Breaking Down the Beds
Studio apartments were the winning choice for Los Angeles renters in Q3 2014. While the city experienced a rent increase of more than 10% year over year, studio apartments did not follow suit. In fact, Los Angeles studios actually experienced a decrease in median rent compare to the previous year of more than 12%. Los Angeles renters shouldn’t get too excited though, one and two bedrooms made up for this decline. Based on Q3 data laid out in our quarterly report, renters looking for a one bedroom unit in L.A. expected to pay more than 15% than the previous year, and renters looking to land a two bedroom expected to shell out more than 16% more than the same time last year.
Fun fact: despite rising rents, Los Angeles renters could score a two bedroom apartment for $2,100 — which was equal to the median rental rate of a San Francisco studio during Q3 2014!
Living the High Rent Life in Los Angeles
Despite a citywide median rent of less than $2,000 in Q3, many Los Angeles neighborhoods boasted median rental rates far beyond the citywide median. The highest rent neighborhood in L.A. was Bel Air, topping the list at $4,300 — slightly less than two and a half times the citywide median rent. Median rent in Bel Air also widened the gap amongst other L.A. neighborhoods, where the next most expensive was Ladera Heights at $3,185. The usual suspects, including Pacific Palisades, Brentwood, Venice and Century City, also topped the charts. For a complete list, check out the chart below!
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Photo Credit: Keith Skelton