Apartment rents fell across most of Southern California last year as more tenants were evicted after they lost jobs and were unable to pay their rents, according to a new study released on Wednesday.
The annual report by the University of Southern California found that the average rent in the Los Angeles area fell nearly four per cent in 2008 as apartment occupancy rates dropped and new units came on the market.
"In Los Angeles County alone, 41,000 people moved out of apartments last year compared to the 29,000 who moved in over the past five years," said Delores Conway, Director of the Casden Real Estate Economics Forecast at USC's Lusk Centre for Real Estate.
"The dramatic changes in the economy are taking their toll on landlords, who are lowering rents or giving concessions just to keep their units occupied," she said.
The average for one-bedroom apartments in Los Angeles was 1,397 dollars last year, according to the report. It also said that occupancy figures are down partly due to the large number of new units that came on the market in 2008.
Prices are expected to stabilise in 2010 as the broader economy recovers, but the downward pressure on rents is expected to continue through 2009, according to the study, which covers Los Angeles, Orange, Riverside, San Bernardino and San Diego counties.