For years, Southern California renters have braced themselves for skyrocketing prices, bidding wars, and minimal vacancy rates. But the tide might finally be turning—at least in some areas.
According to new data from real estate tracker Zumper, select cities in Southern California are seeing modest rent decreases or stabilization, marking a hopeful shift for renters who’ve been stretched thin post-pandemic. But this relief isn’t universal. While some inland cities are loosening their grip, coastal hotspots remain firmly out of reach for many.
So, where exactly are rents falling? And what’s driving this change?
Where Rents Are Actually Falling
While not all renters will feel the same sense of relief, a few key markets in Southern California stand out for their downward movement in prices:
Riverside
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Year-over-year rent change: -3.6%
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Average rent for a two-bedroom unit: $2,071
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Inland cities like Riverside were among the most affordable during the pandemic housing crunch, leading to a boom in migration and rising prices. Now, with more housing supply and less pressure, rents are easing.
San Diego
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Year-over-year rent change: ~6% drop
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Average two-bedroom rent: $2,667
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Despite being a traditionally expensive coastal market, San Diego’s recent boom in new apartment construction has helped stabilize prices, giving some breathing room to renters.
Anaheim, Santa Ana, and Long Beach
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Rents have remained flat or dipped slightly. These central Orange County cities have seen slower demand growth compared to their pandemic highs, resulting in cooling prices and more flexible lease terms.
Why the Drop? The Forces Behind Falling Rents
Several key factors are driving this rent relief:
1. An Apartment Construction Surge
Across Southern California, cities have ramped up multifamily construction. From downtown San Diego to the Inland Empire, thousands of new units have come online. This increase in supply is easing pressure on landlords to keep prices sky-high.
2. Vacancy Rates Are Creeping Up
With many people relocating, shifting to remote work, or pursuing homeownership, some areas are seeing more vacancies than during the height of the pandemic. This makes it harder for landlords to push steep rent increases.
3. Demand Is Softening
After years of relentless price growth, renters are pushing back. Many are choosing to stay put longer, seek roommates, or even move out of state—putting pressure on landlords to remain competitive.
4. A National Cooldown
Southern California isn’t alone. Nationwide, rents have dipped roughly 3.9% year-over-year, with cities like Denver, Austin, and Minneapolis seeing similar or even steeper declines. The West, in particular, has cooled dramatically.
Coastal Cities: Still Pricey and Competitive
While there’s rent relief in inland SoCal, the coastal metro areas continue to present affordability challenges:
Los Angeles
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Rents in LA remain stubbornly high, averaging around $2,712 for a two-bedroom.
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Renters here spend over 35% of their income on housing—well above the commonly recommended 30% affordability threshold.
Santa Monica, West Hollywood, Irvine
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These cities remain some of the most unaffordable in the country. Despite minor dips or plateaus in pricing, low vacancy and high demand continue to make them tough markets for average renters.
Why?
These cities offer desirable amenities: walkability, beach access, vibrant culture, and proximity to jobs in tech, entertainment, and healthcare. Supply hasn’t kept up with demand—so prices stay elevated.
What Should Renters Do Now?
With these shifts, savvy renters may find new opportunities—if they know where to look:
Look Inland
Riverside, San Bernardino, and parts of San Diego are offering relatively better deals than a year ago. If commuting isn’t a concern, these areas provide more space for less.
Negotiate Your Lease
With more competition among landlords (especially in newly built complexes), now’s the time to ask for concessions—think reduced rent, one month free, or flexible move-in dates.
Track Construction Activity
Areas with a high volume of new developments often experience rent dips. Follow your local city planning updates or check online databases for new apartments entering the market.
Final Thoughts: A Market in Transition
Southern California’s rental market is still evolving. While we’re far from a renter’s paradise, the recent data show encouraging signs for those who’ve been struggling to keep up. The combination of new construction, shifting demand, and a more cautious renter base is bringing some equilibrium—particularly in the inland and less saturated markets.
For those dreaming of a coastal zip code, patience or compromise might still be necessary. But for renters willing to explore new areas, relief might finally be within reach.
Source: Where are rents still falling in Southern California? – OC Register, May 8, 2025