Rents paid by Southland residents rose by an average of $42 per month in 2014, according to new data from the online real estate company Zillow Inc.
Total rent paid in the Los Angeles metropolitan area was $34.2 billion, up 5.3 percent from 2013, or an average increase of $42 per month.
The increase for Los Angeles was higher than the national average of 4.9 percent, or $26, but well below some of the extremes in California.
The San Francisco Bay Area, which includes the San Jose and San Francisco metro areas, saw the largest jump, up 14.4 and 13.5 percent respectively. Rent per household in San Jose rose by $197 per month, while rent in the San Francisco increased by $163 per month.
San Diego saw an increase of $55 per month, and Sacramento experienced a $33 rise.
“Over the past fourteen years, rents have grown at twice the pace of income due to weak income growth, burgeoning rental demand, and insufficient growth in the supply of rental housing. This has created real opportunities for rental housing owners and investors, but has also been a bitter pill to swallow for tenants, particularly those on an entry-level salary and those would-be buyers struggling to save for a down payment on a home of their own,” said Zillow Chief Economist Stan Humphries.
“Next year, we expect rents to rise even faster than home values, meaning that another increase in total rent paid similar to that seen this year isn’t out of the question. In fact, it’s probable.”