SoCal home prices are breaking records while apartment rents are dropping during pandemic

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When the pandemic hit in March, and the economy started to tank, but the housing market so far hasn’t crashed. In August, the median home price in the region reached a record-breaking $600,000, which is up 12% compared to the same time last year. It’s a seller’s market for single family homes. 

But it’s turning into a renter’s market for apartments. Rent prices are falling in Los Angeles. The median price for a one-bedroom last month was around $2,000 a month, which is down 11% from last year.

How are both of these things happening at the same time? And what about commercial real estate, with a large number of folks no longer needing office space at the moment? 

Credits

Guest:

  • Eric Sussman - Professor in accounting and real estate, UCLA’s Anderson School of Management