Shanti Singh, communications and legislative director for the Tenants Together coalition, described the situation as a "perfect storm," creating a "chain of displacement." While these historically affordable areas have provided accessible homebuying opportunities for newcomers, the large influx of people searching for housing has created financial strains for lower-income residents. While that burden is down 10% from last year, it still represents a significant barrier to homeownership.Īs property owners sold off their rentals to migrating homebuyers, inland communities started to see a shortage of one-bedroom units, increasing competition among renters.īachaud notes that rent prices saw their largest increases around 2021 driven by "a lot more rental demand, especially in places that had previously been more affordable." According to other data from Zillow, the typical mortgage payment in the Los Angeles area represents around 84% of someone's average monthly income. Nicole Bachaud, a senior economist on Zillow's research team, explained that places like Riverside or Bakersfield "provide opportunities for homeownership, especially in the world of remote work."Īs millennials seek out homeownership, they're confronted with a market that is increasingly inaccessible. Many left the state entirely, while others migrated further inland. The state's densely populated coastal areas saw a large loss of educated white-collar workers. The sudden explosion in inland rent prices can be traced back to the COVID-19 pandemic and, more generally, California's already-existing housing crisis that has long pushed residents to more affordable cities inland and outside of the state. The average income in Kern County is around $25,000, according to the latest US Census data, while the average LA County resident makes about $38,000. ![]() However, because Bakersfield rents were vastly cheaper to begin with, that $500 increase has a much harder impact. ![]() In both Bakersfield and Los Angeles, average rent rose by a little over $500 since the start of the pandemic. Get Southern California news, weather forecasts and entertainment stories to your inbox.
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