Raphael Bostic, interim director of the USC Lusk Center for Real Estate, said the university’s findings are not overly negative. He said it shows there is strong job growth and the rate of rent increases could slow as new apartments open.
“Wages are starting to move. It could be that things aren’t going to get a whole lot worse in the coming years,” he said.
However, Bostic said high rents will continue to have an impact on the economy.
“The bigger issue is we have a lot of renters who are devoting large percentages of their income to rent. If we can back that off, it relieves a bit of the stress and anxiety,” he said, “and get people to turn to more optimistic things, start to be more pleased with how they live and how they can contribute to their communities.”