Los Angeles has become a virtual rental market for the super-rich.
The average rent for single-story condos in the city has increased to $3.2 million, according to a new report from the city’s housing authority.
That’s up from $2.5 million in 2017.
A whopping $1.4 million in the past five years is due to “substantial increases in the supply of single- and multifamily housing, as well as an increase in the demand for existing units,” the city said.
The LA Rent Board also reported that prices have gone up across the city.
For example, the average price for a condo in the North Hollywood neighborhood has gone up by a whopping $10,000 since 2014.
In 2017, the city added about 4,500 new condos to its rental inventory, and that’s up by more than half.
But those new additions aren’t enough to offset the cost of owning a condo, the report said.
In fact, the new homes are going to cost the city more in real terms than they will in rent.
“As a result, a single family home is now valued at $3 million and an apartment building is valued at over $5 million,” the LA Rent board said.
A lot of people are renting out their condos in a way that’s more expensive than buying, the LA Rental Board said.
There’s a good argument to be made that people who can afford to buy a home are not building it.
But the city doesn’t seem to have a good explanation for why this is the case.
The LRA did note that the city is looking at ways to encourage more single-person home ownership.
But, for now, that hasn’t worked.
And it seems like a mistake.
“The fact that more people are living in single-pans and apartments, which in some cases are much more expensive, is just not good,” said Chris Miller, the mayor’s chief economist and co-author of the report.
“There are so many people who are going for this.
It’s a big deal.
The city has to have some sort of plan to support these folks.
They need to be able to afford it.
That can only happen through tax incentives, and those are probably not going to be there.”
“This is the way it works,” Miller said.
“It’s a very unequal market.
It doesn’t reflect what people are actually paying.”