Rents across Southern California are projected to continue increasing through the year 2029, according to a forecast issued by the USC Lusk Center for Real Estate. The findings form part of the Casden Real Estate Economics Forecast, which details specific projections for several regional markets, outlining expected changes in average rents, vacancy rates, housing inventory, and new deliveries.
In Orange County, the average June rent reached $2,792, marking the highest figure among the five studied markets evaluated in the regional outlook. Orange County rent is projected to hit $2,946 by June 2029, with the Casden Real Estate Economics Forecast projecting Orange County rent growth at 1.9% annually for three years. At the same time, Orange County new housing deliveries are expected to drop 40% over three years.
In Los Angeles County, the average rent was $2,362 in June, with the USC Lusk Center for Real Estate and the Casden Real Estate Economics Forecast projecting Los Angeles County rent at $2,469 by June 2029. The Casden Real Estate Economics Forecast projects Los Angeles County rent growth at 1.4% annually for three years. Furthermore, the Los Angeles County vacancy rate stood at 5.6% in June and is expected to drop to 4.87%. In addition to these metrics, Los Angeles County apartment permits rose 60% above prior monthly averages.
Other regional markets show varying trends in inventory and rent growth. In San Diego County, the average rent registered at $2,592 in June, and San Diego County rent is projected to rise 1.5% annually through 2029. San Diego County added roughly 16,000 apartments since late 2023.
In the Inland Empire, the average rent was recorded at $2,150, representing a regional low. Inland Empire rent is projected to increase 2.4% annually through 2029. The region added 12,300 rental units over three years, expanding its apartment inventory by about 7%.
Broader statewide trends provide further context for the region. From 2015 to 2025, California housing stock grew slower than Texas, Florida, and Arizona.
Commenting on the broader real estate landscape, Moussa Diop told a local news report, "Housing cannot be affordable unless we have plenty of it."
Moussa Diop also told a local news report, "San Diego and the Inland Empire show that there is still hope for affordability, but meaningful gains take time and sustained development."