Real Estate Quarterly Overview: Low Supply Dominates Most Sectors
Long Beach Business Journal noted research by Richard Green of the USC Lusk Center about the declining number of available units for Los Angeles County’s growing population.
“We’re not building enough housing. We calculated that Los Angeles County should be building about 35,000 units per year. It’s building about 25,000 units,” Richard Green, director of USC Lusk Center for Real Estate, said. “Vacancy rates for apartments are under 3% and we look at 5% as a normal market so, as a result, rents and prices are rising.”
“People have delayed leaving their parental homes for the housing market. We’ve seen, in the last three to four years, a pickup in kids moving out of their parents’ house and starting their own household,” Green said. “That means we need more units because there are more people looking to be in households on their own.”