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Rent inflation in Los Angeles-Orange County takes biggest surge since 1980

”Survey says” looks at various rankings and scorecards judging geographic locations while noting these grades are best seen as a mix of artful interpretation and data.

Buzz: The federal government’s key cost of living measurement says tenants in California and across the nation are seeing jumps in rent inflation not seen in decades.

Source: My trusty spreadsheet analyzed the lengthy history of the “rent of primary residence” slice of the inflation-tracking Consumer Price Index for three big California metropolitan areas anThe key metric? How fast rent inflation changed in a year’s time — or looking at the increase in the increase.

Topline

The CPI’s extended track record for rent allows us to put rising housing expenses into a long-term perspective.

Consider that during 2022’s first four months, nationwide rent inflation’s one-year jump was the largest since 1948.

In California, San Diego’s eye-popping rent spurt was last bigger back in 1968. And Los Angeles and Orange counties haven’t seen a rent hike surge like early 2022’s since 1980.

And the San Francisco metro area’s rent latest increases were not historically noteworthy — other than marking the first time rent hikes increased after five years of shrinking increases.

Details

In Los Angeles and Orange counties, the CPI says the cost of renting in 2022’s first four months is up 3.43% in a year. In 2021, rent inflation ran at 1.24%.

That 2.2 percentage jump in what tenants pay — if it continues the rest of the year — would be the biggest surge in 42 years.

Nationally, consumers are paying 4.3% more for rent this year — that’s 2.07 percentage points higher than last year’s 2.23% hike.

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