Rental costs in Los Angeles have fallen for the reason that begin of the COVID-19 pandemic, however some group leaders have stated reducing costs might not assist people who find themselves already struggling to pay their payments.
Common hire in Los Angeles was down 7.4% from a 12 months in the past, based on information from Condo Record, an internet house rental market. In Westwood, the present median hire for a two-bedroom residence, $ 3,650, is down about 13% from a 12 months in the past. In the meantime, Los Angeles house costs have risen about 2.4% month-over-month over the previous 12 months, based on California Affiliation of Realtors information.
Eric Sussman, professor of accounting, stated on a KCRW podcast that this contrasting phenomenon might be described by drawing the letter “Ok” on a graph. The upward tilt represents the single-family market – prosperous homebuyers who have been principally untouched by the wave of job losses throughout the pandemic, he stated. The slippery facet is the rental market – the blue collar staff who’ve been hit arduous by unemployment.
At first look, falling rental costs might seem to profit tenants. However throughout the COVID-19 pandemic, falling rental costs present no considerable aid to weak populations already dealing with financial instability, some group leaders have stated.
“On the finish of the day, I do not see any (hire) reductions that basically have such a huge impact by way of serving to tenants who’re very cash-strapped proper now,” stated Andrew Lewis, co-chair of North Westwood. Neighborhood Council Neighborhood Well being and Homelessness Committee.
Lewis added that Westwood tenants who don’t at the moment dwell in Westwood attributable to COVID-19 and are locked in overvalued leases nonetheless must pay hire.
For some UCLA college students residing in Westwood and juggling a number of jobs to satisfy rental deadlines, the hire cuts have little to no impact.
Melody Satele, a third-year environmental research, geography and sociology scholar, stated she moved from her outdated residence in Westwood to a less expensive residence on Veteran Avenue, however nonetheless needed to work three jobs to make ends meet .
“The hire remains to be too costly,” she says. “The flats aren’t even that good and we at all times pay over $ 3,000 for that high quality. I really feel like I am at all times wired.
Though typically ignored, some owners have needed to cope with the delicate financial situation that affects the town.
“In Westwood there are fairly a number of mother and household homeowners,” Lewis stated. “And if in case you have a number of items that simply cannot afford the hire proper now, it goes again to the owner and it is tougher for them to pay the monetary obligations and mortgages on their very own.
Paul Yoder, the supervisor of Levering Arms Residences, stated that since COVID-19, common rental costs at his advanced have fallen by round $ 300, however some tenants have nonetheless requested reductions or extensions.
“The homeowners of my constructing are clearly upset by the lack of an excellent chunk of their earnings,” stated Yoder. “They are saying it will likely be a reasonably dry 12 months.”
Regardless that there’s a momentary drop in hire costs, Lewis stated he believes the housing disaster in Westwood will proceed to persist after the COVID-19 pandemic.
“I do not anticipate the rental housing decline to stay post-COVID-19,” Lewis stated. “The true alleviation of the housing disaster in Westwood can be to extend the housing inventory with further items whereas defending weak tenants from housing loss.