Increase in WeHo’s Market-Rate Rents Fell Sharply Last Year


Market-rate rents for newer West Hollywood units grew an estimated 6% in 2016, down from 12% in 2015. That is according to a new report by WeHo by the Numbers based on data from the city and Zillow.

The report uses two rent indices to measure changes in market-rate rent s. One is the Zillow Rent Index, which may be more attuned to the city’s newer, market-rate housing. The other is an index created for the purposes of the report: the Rent Stabilized New Tenant (RSNT) rent index. It focuses on the city’s older housing units. It is based on the average rents paid by new tenants in rent-stabilized units. New tenants start at the market rate, even in rent-stabilized units.

weho by the numbers
David Warren

The Zillow data suggests that increases in market-rate rents peaked at 12% in 2015 and then dropped to 5% in 2016. They averaged 6% or so in recent years. The RSNT index shows steady annual increases of about 6% since 2012. During the same period, the maximum allowable annual increase for existing tenants in rent-stabilized units was 1.25% or less.

The report used the Zillow index to compare increases in West Hollywood’s market-rate rents to nearby areas. Increases in 2016 ranged from 4% in Westwood to 9% in Hollywood. West Hollywood’s 5% was toward the low end. The year before, the city’s 12% increase was close to the top.

Hollywood and Beverly Hills stayed near the top in both years, though the growth rates slowed. Hollywood went from 12% in 2015 to 9% in 2016. Beverly Hills went from 14% to 7%. Santa Monica showed the biggest change, going from a 16% rent increase in 2015 to 5% in 2016.

To find out more, see the full report, How much did West Hollywood market rate rents go up in 2015 and 2016?

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J Simmons
J Simmons
3 years ago

@Alison It’s NOT just you. This “weho by the numbers” they repeatedly post are totally meaningless, but usually come out around a kinda similar sounding issue.

BTW rent is always Supply & Demand.

How many of the numerous brand new prison block new “luxury apts” are actually rented?

Alison
Alison
3 years ago

Is it just me, or does this mean nothing without actual numbers? Percentages mean nothing. One has to go to the supporting document this time to find an actual number. I find these WeHo By the Numbers articles to be pretty meaningless all around.