USC forecast predicts Southern California rent increases through 2029

A new forecast from the University of Southern California Lusk Center for Real Estate projects that rents across Southern California will continue to rise through 2029. While San Diego County has seen some relief due to an apartment construction boom, other regions face ongoing shortages.

San Diego County added approximately 16,000 apartments since late 2023, roughly double the new supply added in Orange County during the same period. This increased density has kept San Diego rents about 7% below those in Orange County. San Diego's average rent is projected to grow by 1.5% annually, reaching an estimated $2,707 by June 2029.

In contrast, Orange County is expected to see annual rent growth of 1.9%, with average rents projected to reach $2,946 by 2029. Los Angeles County is forecast to see 1.4% annual growth, while Ventura County and the Inland Empire are projected to see increases of 2.2% and 2.4% respectively. The report notes that Los Angeles, Orange, and Ventura counties remain chronically undersupplied, and a decline in new housing deliveries in some areas could threaten affordability.