Average rental increase the southland is expected to be 8% by 2016.
It’s almost 10% in the inland empire. There is not enough supply. Nothing build lately and still too many people upside down.Job growth is strong and more people are moving out on their own. Vacancy rate is supposed to drop to less than 3% which is amazing. the amount of people who spend at least 505 of their income on housing has doubled since 2006.
This has a downside. Companies wlll not expand here and will actually move to a cheaper state. If housing costs are so high,they cant get people to move.
One of the problems is Ca. really tight laws against everything. The approval process for permits is way too long and difficult. We have laws against everything.
The economy here is improving and the job market is also so that will influence rents. If people can qualify, they won’t rent- they will buy.
The point is that it’s a great time to buy and hold.
