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partment rents are projected to surge by up to $148 per month in the next few years across Southern California, outpacing multifamily construction. The five-county Southland can expect rent increases of between $110 and $148 per month, with Los Angeles County tenants facing a $58 monthly hike, according to USC's Casden Multifamily Forecast.

    The forecast attributes the rising costs to a housing shortage and lagging multifamily construction. Despite a robust economy, new housing supply and affordability remain precarious. "We've experienced a construction slowdown in an area dangerously tight on new supply," said Moussa Diop, co-author of the forecast and associate professor at USC. California is falling behind states like Florida and Texas, which are outbuilding it.

    Construction in Los Angeles County and surrounding areas has been sluggish, with only 1.2 percent of the region's 1.7 million apartments completed over the past year. In contrast, other states have seen significant construction growth, such as Georgia and North Carolina, where new units account for between 1.5 and 2 percent of their apartment inventory.

    The anticipated rent hikes are moderate compared to previous double-digit increases during the pandemic. Since then, rents in Los Angeles County have risen an average of $300 per month, while the rest of Southern California has seen increases of up to $700 per month. By mid-2026, the average apartment rent is expected to reach $2,334 in Los Angeles County and $2,786 in Orange County, representing 3 and 4 percent increases, respectively.