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SoCal rent costs fall, 1st dip in 14 years

November 19th, 2009, 7:10 am · 20 Comments · posted by Jon Lansner

Renting costs in Southern California fell at an annual rate for the first time in 14 years, according to the freshest Bureau of Labor Statistics’ Consumer Price Index.

Local renters’ costs fell 0.1% last month vs. October 2008. Last such SoCal decline? A similar size drop in November 1995.

Renters weren’t the only housing winners in the CPI report:

  • Homeowners equivalent inflation rate (purchase costs not included), fell at an 0.7% annual rate in October. That’s biggest SoCal drop since June 1995.
  • Household energy costs in SoCal fell at an 0.7% annual rate in October.Actually, that’s the smallest drop in a string of declines that dates to last November.
  • Household furnishings and operations fell at an 2.5% annual rate in October. That’s biggest SoCal drop since April 2008.
  • Overall, SoCal housing inflation fell at an 0.6% annual rate in October — fourth consecutive drop and biggest since June 1983.
  • As for the big picture, SoCal total inflation rate for all goods and services fell at an 0.4% annual rate in October. It’s the eighth consecutive drop — but that smallest in that string.

Rental trends:

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 20 Comments

  • BOGEY says:
    November 19, 2009 at 8 am

    The ponzi finance deflationary debt deleveraging downward spiral continues. Anyone know of any catchy tunes about rental parity?

    on another note:

    Mortgage Delinquencies Jump To Record High in 3rd Quarter

    http://www.cnbc.com/id/34038756

  • BOGEY says:
    November 19, 2009 at 8 am

    when it rains, it pours. ie.,

    Mortgage Applications Decrease in Latest MBA Weekly Survey

    The four week moving average is down 5.8 percent for the seasonally adjusted Purchase Index

    http://www.mbaa.org/NewsandMedia/PressCenter/71068.htm

  • bpsqwerty says:
    November 19, 2009 at 9 am

    that’s not right. talk to anyone, they’ve been falling for at least a year, at least in Central OC. these statistics are fishy.

    • bpsqwerty says:
      November 19, 2009 at 9 am

      I suppose if you’re comparing YOY however, then it almost makes sense. so what it’s saying is the price fell from October 2008 to 2009, which is basically looking back 1 year and 1 month til now. so maybe they’re not lagging quite as much as suspected. still think they’re a few months behind the actual trend but pretty close.

  • Realist says:
    November 19, 2009 at 9 am

    Just re-upped my lease and rent went down $200 a month in Irvine. Awesome!

  • OC Renter says:
    November 19, 2009 at 10 am

    Bull$~!
    My rent went up $100 a month!

    • Tom M says:
      November 19, 2009 at 10 am

      In today’s market only a sucker would sign for an increase. Blame yourself, if you don’t for a cut on your rent.

    • LMosher says:
      November 19, 2009 at 10 am

      Mine didn’t go down either !!

      • bpsqwerty says:
        November 19, 2009 at 11 am

        every community is different. if you’re on a lease and it’s going to end, keep checking back to see what kind of deal they’ll give you. for example, Irvine Co. changes their prices every week based on how many occupancies they have and how many new leases they signed the previous week.

  • Lucifer'sFlowers says:
    November 19, 2009 at 10 am

    0.1%?

    That’s what, a dollar a month? Wow!!!

    The landlords are really taking a BIG cut in these tough economic times.

    Let me know when the rents drop enough so your average OC resident doesn’t have to work two jobs to survive.

  • Jc says:
    November 19, 2009 at 11 am

    Yes rents should go lower. Landlords are not lowering enough.
    But…
    Many of them (landlords) they borrow as well, and can’t go to low. This is one of the banks problems with commercials Loans.

  • Rob says:
    November 19, 2009 at 11 am

    What? First dip in 14 yeasr? OCR you have posted several stories on the OCR website in the past 4 months about rents being at their lowest in years or a drop in rent. Please EXPLAIN this story or correct me if I am wrong.

  • Dwoods says:
    November 19, 2009 at 12 pm

    Keep those rents high! It just makes buying more attractive.

  • Liar Loan says:
    November 19, 2009 at 1 pm

    “Last such SoCal decline? A similar size drop in November 1995.”

    So the last time this happened was at the bottom of a real estate cycle??? Go figure.

  • OC Real Estate Genius says:
    November 19, 2009 at 1 pm

    Anyone complaining about not getting lower rent needs to wake up! There are SO many half empty apartment complexes out there. If your landlord tries to raise your rent, you can easily move to somewhere newer and cheaper.

  • Sam says:
    November 19, 2009 at 11 pm

    i lived in a apt of 1000 sf. in Phoenix for $ 950 x month.My lanlord did not want drop the rent,guess what,i moved a block away into a duplex of 1250 sf for $800.This what you do.You move on.