A disturbing trend has emerged in Southern California — some communities now have more renters than homeowners.
The issue was highlighted in a recent Los Angeles Daily News story. The latest cities to achieve this distinction are Pasadena, Lancaster, San Bernardino, Anaheim and Santa Ana.
In 2006, nearly half of Pasadena’s population were renters. By 2016, that had risen to 58.3 percent. Lancaster has experienced a similar trend. Its share of renters rose from 36.2 percent in 2006 to 51 percent in 2016, an increase of nearly 41 percent.
Mel Wilson, broker and owner of Mel Wilson & Associates in Northridge, tied much of the trend to increasing home prices. There isn’t enough housing to meet the demand, he said, and it’s created a ripple effect that’s really hurting middle-income residents.
“Home prices in Southern California are high and they’re increasing every year,” Wilson told the Daily News. “That’s put a lot of middle-income workers in a bind because they can’t afford homes. Their only other option is to rent.”
Rents have been rising as well.
“In many jurisdictions where there is no rent control, a one-bedroom apartment could start at $1,700 to $1,800,” Wilson continued. “And many times, you’ll only get 600 to 700 square feet.”
If you need renters insurance, call Carol Smith of insurancescv.com or call 661-803-3803.