LA shows strong rental price gains in new report

Rents now gaining ground
  • Rental prices are going up in many California cities, some showing double-digit gains.
  • Yields on housing used as rental properties grew more slowly than rent increases.
  • Los Angeles ranked sixth on RentRange's new list of top 25 metros.

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Investors who buy homes to turn them into rentals expect that renting out a home will prove more lucrative than flipping over the long haul. What’s key is patience, and basing the original purchase on good information about the health of a particular real estate market. Rental market intelligence provider RentRange recently released a report on the top 25 U.S. metropolitan statistical areas (MSAs); it looked at pure price appreciation in rents and in yields that can be expected from rental properties. This installment of the list examined increases in rental rate and yield between the third quarter of 2015 and the same quarter in 2014. California and Florida cities dominate the overall list, with a dozen spots between them. Those states also have cities that land most often in the top 10 for rental increases, with Los Angeles coming in sixth. LA’s rental price increases were measured at 16.3 percent, and yields increased by 5.6 percent. “Rental prices were distress...