Rents in Los Angeles County have fallen to their lowest level in four years, but housing affordability remains out of reach for many residents, according to a report released Wednesday.
The median asking rent dropped to $2,520 in the first quarter of 2026, down $97, or 3.7%, from a year ago and well below the peak reached during the pandemic-era surge in 2022, according to Realtor.com.
Despite the decline, economists said rents remain high relative to incomes, requiring a household to earn more than $107,000 annually to afford a typical unit in Los Angeles.
“Los Angeles is a market in transition,” Danielle Hale, chief economist at Realtor.com, said in a statement. “Supply has finally caught up, giving renters more options and more negotiating power than they’ve had in years. But falling rents don’t automatically mean affordable rents.”
Within the city of Los Angeles, the median asking rent was $2,682 in the first quarter, down 3.5% from a year earlier, according to the report.
The gap between current asking rents and what many tenants actually pay remains significant, with the median contract rent at $1,804 in 2024 — more than $1,000 lower than current listings.
Analysts said that disparity has contributed to a growing number of renters staying in place, with more than 86% of tenants remaining in the same unit year over year.
Recent policy changes are also expected to shape the market. A revised Rent Stabilization Ordinance set to take effect in July will cap annual rent increases at 4%, down from a previous limit of 8%, and apply to roughly three-quarters of rental units in the city.
Market trends varied across Los Angeles County, with higher-priced coastal areas seeing some of the steepest declines. In Beverly Hills, median asking rents fell 9.3% to $4,574, while Santa Monica saw a 2.6% drop to $4,187.
Even higher-end markets such as Malibu posted declines, with rents down 3.6% to $14,871.
By contrast, more inland and transit-oriented communities held steady or saw increases. Rents in Pasadena rose 5.8% to $2,823, while Long Beach increased 2.4% to $2,624.
Culver City remained largely flat, with rents up 0.2% to $2,821.
Analysts said the divergence reflects shifting demand, with renters gravitating toward relatively more affordable areas and neighborhoods with transit access, while higher-cost coastal markets adjust after pandemic-era rent surges.