According to Apartment List, Santa Monica rents dropped by 0.2% in October, down to $2,310 for a one-bedroom apartment and $2,769 for a two-bedroom. Overall, rents in the city have decreased for 10 straight months per the website, with the overall 5.5% drop year-to-year being the largest among the 25 Los Angeles metro area cities listed in the report.
On the national level, the Apartment List report states that the fall and winter seasonal declines in rent prices have been "steeper than usual," and with seasonal increases associated with the spring and summer months being "more mild," apartments have become "on average slightly cheaper today than they were one year ago." On top of Santa Monica’s dip, the national year-over-year rent has gone down by 0.7%.
The report goes on to state that these seasonal shifts have also shifted slightly in the past two years, with the off-season flipping around August instead of the usual October drop-off. ApartmentList also says that while rental demand "has bounced back a bit" in 2024, signs of "labor market softness" could lessen demand going forward.
While Santa Monica is outside of the confines of Los Angeles proper, a drop in rent could soon mean increased demand, even with peak rental season coming to a close. In its latest Rental Activity Report, website Rent Cafe noted that California is home to a host of rental hotspots, with Los Angeles leading the way.
The 12th-most in-demand city nationally, the apartment listing website states that Los Angeles has seen a 15% increase in page views from renters, as well as an 8% drop in apartment availability.
"This combination indicates high engagement and limited availability, showcasing LA’s appeal among local renters and those relocating from other major metropolitan areas," the report stated.
California now has nine cities in the report’s top 30 most in-demand spots, with Sacramento, Riverside and Santa Ana joining Los Angeles, San Jose and Long Beach on the list. Sacramento joined the list, Rent Cafe noted, due to it being a "budget-friendly alternative to the Bay Area," while Riverside has had a "growing attraction seeking affordability with proximity to urban amenities and outdoor spaces."
For more on the Apartment List report, click here. For more on the Rent Cafe report, click here.
thomas@smdp.com
