The average residential rent in Los Angeles County has fallen to the lowest level in four years, but housing affordability remains elusive for many residents, according to a report released Wednesday.
The median monthly rent cost fell to $2,520 in the first quarter of this year, down $97, or 3.7%, from 2025 and significantly under the peak of the 2022 pandemic-era spike, Realtor.com reported.
Despite the recent cost decline, economists said rents remain high relative to incomes. A household must earn over $107,000 annually in order to rent a typical residential housing unit in the region.
“Los Angeles is a market in transition,” Realtor.com Chief Economist Danielle Hale said in a statement. “Supply has finally caught up, giving renters more options and more negotiating power than they’ve had in years. But falling rents don’t automatically mean affordable rents.”
Within Los Angeles city limits, the median asking rent was $2,682 in the first quarter of 2026, down 3.5% from 2025, according to the report.
A significant gap remains between current asking rents and what many tenants actually pay. The median contract rent was $1,804 in 2024, more than $1,000 lower than currently listed rental costs.
Analysts noted that disparity has contributed to the number of renters staying in place, with more than 86% of tenants remaining in the same unit year over year.
Policy changes set to take effect in July are also expected to shape the market. Los Angeles’ new Rent Stabilization Ordinance will limit annual rent increases to a maximum of 4%, down from a previous 8% cap, and apply to about 75% of rental units in the city.
Market trends varied across LA County, with higher-priced coastal areas seeing some of the steepest median rent declines. In Beverly Hills, median asking rents dropped 9.3% to $4,574, while Santa Monica saw a 2.6% drop to $4,187.
Even higher-end markets such as Malibu saw rent cost declines, down 3.6% to $14,871.
Inland and transit-oriented communities, however, held steady or experienced increases. Pasadena rents jumped 5.8% to $2,823, while Long Beach saw a 2.4% rise to $2,624.
Culver City rents were relatively flat, up 0.2% to $2,821.
Analysts said the divergence indicates changing demand, with renters attracted toward relatively more affordable areas and neighborhoods with transit access, while higher-cost coastal markets are adjusting after pandemic-era rent spikes.
