It’s no secret that Los Angeles is one of the most popular destinations in the United States. After all, in many people’s eyes Los Angeles is the perfect place. With great weather and great opportunities, L.A. overs something that not many other places do. Plus, the chance to run into some of the biggest celebrities in the entertainment industry is very appealing to a lot of people. Although L.A. has is often considered a place for tourists, people are also relocating to the city and large numbers, and it looks like landlords are reaping the benefits. Although there was once a time when L.A. landlords struggled to get market-rate rents, it looks like those times have become a thing of the past.
After the great recession, more people started renting, and the real estate market in many places has tipped in favor of landlords who can easily command high prices in a very competitive market. Fortunately for Los Angeles, the city has become one of the places to benefit. A recent report by the company RentRage has introduced some very interesting news. The findings show that rental prices in the city have increased greatly – some even by double digits.
According to the report, “The California market experienced a lot of distress, and is now coming back.” The report also shows that Los Angeles is sixth on RentRage’s list of top 25 metros. The company discovered its findings by looking at pure price appreciation in rents and the amount of yields that can be expected from rentals. Cities in California as well as Florida dominated the list, and both prove to be great places to make property investments.
For those looking to purchase properties that will eventually be turned into rentals, this is great news. Sources also noted, “Investors who buy homes to turn them into rentals expect that renting out a home will prove more lucrative than flipping over the long haul. What’s key is patience, and basing the original purchase on good information about the health of a particular real estate market.” But while these findings are great for people looking to invest in real estate, they aren’t so appealing for those looking to rent. An increase in rental prices means exactly what it sounds like, and for most people, paying more for rent simply isn’t something they can afford.
Unfortunately in the real estate market, it’s rare to find a situation that is both beneficial to landlords and to renters, but after years of watching the economy struggle, this is definitely better news that many people have seen in recent years.
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