Rents in Santa Clarita have increased 1 percent over the past month, and its year-over-year growth of 2.1 percent exceeds the national average of 1.5 percent, according to a recent report.
A survey from Apartment List, an online platform that connects renters with apartment listings, revealed that median rates in Santa Clarita stand at $1,980 for a one-bedroom apartment and $2,550 for a two-bedroom. The city has also had rent increases for three straight months after a decline in January, said Chris Saviati, a housing economist with Apartment List.
“(Growth is) definitely at a quick pace that is increasing and it’s well above the national average,” he said. “That’s something that we’re seeing in a few different markets (nation-wide), but LA is one of these areas that’s growing very quickly. It’s something we’re seeing throughout California.”
Job growth and a disproportionate number of apartment developments may have contributed to Santa Clarita’s higher rent prices, said Nancy Starczyk, a Santa Clarita realtor and board member of the Southland Regional Association of Realtors.
Starcyzk said many millennials would rather trade space for convenience and be located in proximity to downtown areas. At the same time, many developments in the Santa Clarita Valley are condominiums and townhomes, but are not for rent, she said.
“Young people are looking to rent more than before because they can’t afford a house now,” she said. “Renting is a stepping stone to home ownership. But for young people, it’s hard to save up for a down payment. People have loans and student debt they can’t handle. The costs of living have gone up too, making it hard for people to save any money.”
Some realtors attributed the increases to the way demand and supply dictates the market.
“Rental rates are going to continue to rise due to supply and demand,” said Amanda Etcheverry, a local RE/Max realtor. “There just isn’t enough housing to go around. Once the new construction starts to take off in the next few years, I think we will stop seeing such a dramatic increase year after year.”
Saviati said he believed the L.A. metro as a whole would continue to see generally above average rent growth throughout the year. He also confirmed Santa Clarita was among the more expensive cities in the LA metro, but the one area of L.A. County with a lot of new development coming in.