Rents are rising again in Southern California and, to no one’s surprise, the effects of inflation dominate many of the conversations around the topic. A spike in borrowing rates, people are quick to note, not only prevents some renters from becoming homeowners, but drives up the cost of new construction altogether. That keeps vacancy rates low and prices high.
That’s accurate, as far as it goes. But it doesn’t come close to explaining what is happening in Southern California or around the state regarding the fate of renters.
