Though Santa Monica apartment rent prices continue to dip ever so slightly, the Westside market remains less competitive than its Los Angeles metropolitan area neighbors.
According to a new report by RentCafe, Western Los Angeles County, which includes Santa Monica, was deemed the "least competitive" market for apartment rentals out of California metro areas. This was determined by factors like the average apartment vacancy time before being rented out, the amount of prospective renters for a place, as well as lease renewal rate.
Out of 12 California markets researched, ranging from Eastern and Northern Los Angeles County to the Bay Area and Sacramento, Western Los Angeles County scored last out of these competitive metrics. An apartment stays on the market for an average of 46 days, a typical number, however the Westside is hampered by a low apartment occupancy rate (92.6%). In comparison, Eastern Los Angeles County has a 95.8% occupancy rate.
The amount of prospective renters for a spot, nine on average, also pales in comparison to Eastern Los Angeles County (14). The report notes that spillover effects from high prices in central Los Angeles led to increased competition on the Eastside, with prospective renters shunning the Westside.
"As the moving season began, many renters found themselves priced out of the Central apartment market, which then prompted them to look east for more affordable options within a reasonable commuting distance," the report states.
Lease renewal rate is also a low point on the report, dipping well below half with just 46.1% of renters deciding to give the Westside another go. This is despite a year of declines in Santa Monica rent prices, as an Apartment List report states that prices from July 2023 to July 2024 fell 4%, outpacing drops in the California (0.8%) and national (0.7%) averages.
The month of June dropped Santa Monica rents another 0.3%, with a one-bedroom apartment going on Apartment List for an average of $2,331 per month and a two-bedroom renting for $2,794. Out of the 25 Los Angeles metropolitan cities researched, the year-over-year decline in the city ranks second only behind West Hollywood (6.7% drop).
In California, a Silicon Valley revival has been the competitive highlight of the market per RentCafe, with the area emerging as a desired renting spot in the country.
"This remarkable surge has been largely driven by a rebound in the tech sector, which forced economic challenges and layoffs in 2023-23," the RentCafe report states. "Currently, venture capital firms are heavily investing in emerging technologies … and, many of these firms and their start-ups are based in Silicon Valley, further adding to its appeal as a top rental destination."
