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Rents up 5.7% in Los Angeles and Orange counties, biggest hike in 14 years – Orange County Register

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The cost of renting in Los Angeles and Orange counties continued to rise at a 14-year high — increasing at a 5.7% annual rate in November vs. 5% a year earlier, according to a slice of the local Consumer Price Index.

The last time this measurement by the U.S. Bureau of Labor Statistics showed a bigger increase in November was 2005. In the Inland Empire, a new CPI showed rents in Riverside and San Bernardino counties are up 4.7%.

Local rents have risen sharply as the economic recovery from the Great Recession gained steam. So far this year, the L.A.-O.C. rent index rose on average 5.6% compared with 4.9% in 2018 and 4.6% in 2015-2017. It’s a sharp contrast to the 2009-14 period when local rents rose on average 1.7% a year.

Here are a dozen inflation trends you should be watching …

1. Broad CPI: For November, L.A.-O.C.’s overall inflation rate was 3.1% vs. 4.1% a year earlier. This year local inflation has averaged 3.1% vs. 3.8% a year earlier and 1.6% over the previous five years.

2. Nationally: November’s U.S. inflation ran at 2.1% while CPI in Western states rose at a 2.8% pace.

3. Rent vs. inflation: L.A.-O.C. rent increases this year average 5.6% vs. 3.1% overall inflation. That’s rent growing 81% faster than the region’s broad cost of living. Last year, rents rose at a 4.9% pace vs. inflation’s 3.8% increase — 28% faster. Since 1990, rent growth has averaged 23% more than local inflation’s increases.

4. Shelter’s burden: Housing eats up the biggest share of local household budgets. By CPI math, overall housing costs in L.A.-O.C. rose 4.4% in the past year. Minus shelter costs, the CPI’s up only 2.2% in 12 months.

5. Fuel: Gasoline in L.A.-O.C. cost 7.8% more in the last 12 months, by CPI math. Household energy costs 2.4% more.

6. Food: Groceries rose 1.5% as dining out got 6% pricier.

7. Medical: Bills were 2.4% costlier.

8. All local services: 3.7% pricier.

9. Apparel: Clothing was 2.5% cheaper.

10. Big-ticket items: The cost of “durable goods” (such as appliances and furniture) was 0.1% lower.

11. Size matters: Big cities in Western states saw consumer prices last month up at a 3.1% annual pace. Smaller Western cities? 2.5% inflation rate.

12. Elsewhere in the West: San Diego CPI? Up 2.6% annually vs. 0.9% for Urban Hawaii.



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About The Author
Jeff Stearman

Jeff has experienced much success in his many years as a Realtor, consistently ranking in the Top 1% of Realtors nationally as well as the Top Agent locally. Jeff also has an MBA and Graduate Realtor Institute (GRI) designation and is Certified Short Sale Specialist and Distressed Property Negotiator and Expert. Jeff has a firm grasp on today’s real estate market and is an expert in all areas of residential real estate, including: traditional sales, residential income properties, vacation properties, luxury homes, as well as distressed properties. Additionally, with his background in mortgage & financial consulting, Jeff can help you understand the numbers side of real estate and offer valuable advice on the different types of home loans and financing options that you could take advantage of. His clients say: "If you want something done, ask a busy Realtor.” The Stearman Group has successfully sold over 3,000 homes because they carefully work with their clients to create successful solutions. They strive to solve your individual housing needs-one client at a time. His team gives only the Best Personalized Service to each of their clients every single time.

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