Looking to relocate to San Fernando Valley, CA? Among the top aspects, you will be interested in learning about would be housing costs. If you intend to rent, you will want to know what rental prices you are likely to incur. This post aims to address this critical concern and others.
But if you want to learn more about San Fernando Valley real estate, real estate experts at Park Regency Realty boast the experience and knowledge to offer you any help you need with renting, buying, and selling property in the Valley. Contact us today at 818-363-6116.
With the above in mind, let us delve into the rental costs in San Fernando Valley.
Current Situation
San Fernando Valley's rental market is presently tight, registering an overall vacancy rate of 4.5% in 2020. The rate has consistently dropped in the past few years, even though the region has seen a significant increase in new apartment supply. We can attribute this excess absorption of new units to the growing rental household, which consistently exceeds the rental inventory growth.
Renter-occupied households account for approximately 44% of the San Fernando Valley real estate. And 78% of the region's rental housing market are apartments. As of early 2020, apartments with 20 or more units recorded a 2.6% vacancy rate, down from 4.8% in 2010. This is partly due to the reduced affordability of the sale housing market. Therefore, it does not come as a massive surprise that rental prices seem to be growing faster in San Fernando Valley than in other LA regions.
The average apartment size in San Fernando Valley is 660 square feet, but it varies significantly depending on the unit type. Studio apartments are the smallest and the most affordable units- they offer an average of 618 square feet and cost an average of $1,915 per month. If you are looking for a one-bedroom apartment in the Valley, expect to spend between $1,605 and $4,000 monthly. The average monthly prices for 2-bedroom and 3-bedroom apartments are $2,598 and $3,475, respectively.
Twenty-two percent of the occupied single-family homes in the San Fernando Valley are rentals, which a commendable change from 20% in 2010. In late 2019, the vacancy rates for professionally managed 1-bedroom and 4-bedroom single-family homes were 1.6% and 1.5%, respectively.
Between 2010 and 2019, single-family homes saw the highest rent increase, up 8% to $2,200. In comparison, the rental rates for two-, three-, and four-bedroom homes in the Valley average at $2,800, $3,175, and $4,075, respectively. This represents a 2%-6% increase.
Rental Homes in San Fernando Valley
Most Expensive and Affordable Areas to Rent in San Fernando Valley
The most expensive communities in San Fernando Valley and their monthly rental rates are:
Between 2010 and 2018, the highest rent growth was in Glendale city, which registered a 10% rise between 2017 and 2018. This was mainly due to the completion of numerous luxury units in the area. Due to the growing demand, Glendale also had the most decline in vacancy rates in the Valley, from 5.1% to 3.4%. The rent growth rate in Studio City came second at 7%. However, Studio City was the only city where vacancy rates increased in San Fernando Valley; but its rental market remains tight.
Among the cheapest places to rent in San Fernando Valley are Pacoima ($1,203), Panorama ($1,319), and Sun Valley ($1,350).
Pacoima and Van Nuys rank among the tightest rental markets in the Valley, boasting an estimated vacancy rate of 1.1% and 1.7%, respectively.
Rent Affordability in San Fernando Valley
Rental housing in some parts of San Fernando is costly, although affordability across LA has improved moderately, with median income growth more incredible than the median rent growth. Despite this improvement, an estimated 27% of renters in San Fernando were cost-burden between 2011 and 2015. These renters were spending between 30% and 49% of their income on rent. A larger portion of the renting households, 34%, were extremely cost-burdened, spending over half of their income on rent.
The state and local governments are implementing several policies to curb the rental affordability issues. For instance, Glendale's city requires that 15% of rental developments with five or more units be reserved for medium-to-low-income households; otherwise, the property owners pay a specific fee towards the development of affordable housing in the future.
Amidst the uncertainties of COVID-19, several LA cities enacted a series of emergency measures geared towards protecting renters from evictions. They included advising property owners against evicting tenants who cannot afford rent because of COVID-19 or increasing rent during the pandemic.
Find a Rental Property in San Fernando Valley
Now that you know San Fernando Valley's rental market's basics, the next major step is finding a rental unit that best matches your needs and budget. San Fernando Valley real estate offers endless rental options, and finding the right choice could be overwhelming.
Committed to your satisfaction, real estate experts at Park Regency Realty can harness their in-depth experience and knowledge in San Fernando Valley rental estate to help transform your desires into a reality. Please, contact us at 818-363-6116 or message us online for more information about the Valley's rental market and a personalized discussion conversation around your specific renting preferences. We are more than excited to help.