Los Angeles Rents Are Falling, but Not Enough To Be Affordable for New College Grads

Los Angeles rents dropped to a nearly five-year low this spring, offering tenants some very welcome relief. Yet, the city's newly minted college graduates still find themselves squeezed by stubborn housing costs.L.A. County's median asking rent dropped 3.4%, or $91, to $2,603 by the end of June, hitting a level not seen since late 2021, according to the latest Realtor.com® Los Angeles rent report.For context, the current median sits nearly 10% below the 2022 peak. Realtor.com economist Jiayi Xu attributes this recent pullback in rents to a surge in multifamily construction, which boosted supply and, in doing so, put downward pressure on asking prices.However, for the Class of 2026 looking to secure rentals this summer, the L.A. housing picture is far less rosy. Many new graduates can expect to pay more than 30% of their salary for a studio apartment in the city, exceeding the common threshold for rent affordability.To estimate graduates' entry-level salaries in L.A. County, Realtor.com economists used national salary projections from the National Association of Colleges and Employers as a baseline and applied a 15% geographic premium to reflect the West Coast hub's higher wage leve...