Bureau of Labor Reports Rental Increase in Q2 2019

Los Angeles, CA - Growth of rental rates between 2018 and 2019 shows no slow down despite a seasonal lull in the first quarter of 2019. US Bureau of Labor Statistics’ Consumer Price Index (CPI) for Los Angeles and Orange County shows the cost of rental of residences (Housing-Shelter-Owner’s equivalent rent of residences) increased year-over-year by 5.1% to 5.8% for April, May, and June in the two counties. The government has attributed this to strong job growth in the labor market.

In Los Angeles, overall CPI has only grown app 3.3% from June 2018 to June 2019. There were some numbers in the index that reduced through the quarter. Food prices decreased .3% from May 2019 to June 2019. The energy index decreased 4.1% and the bureau attributes this to lower prices of gasoline.

Lower vacancy, slow increase of supply, and the additional 1.19million jobs over the last decade have all attributed to the increases. Housing continues to account for the biggest share of household expenditures. Cost of home ownership has also increased higher at least 1% over the CPI.