L.A.-area rents high - and climbing higher

The L.A.Daily News reports:

Los Angeles-area rents, already among the nation's highest, jumped by 7 percent in 2005, and a similar bump this year is expected to push the average monthly rent to more than $1,500, according to a University of Southern California forecast released today.

The run-up in rent is fueled by high demand for apartments and few vacancies. About 97 percent of the region's apartments are currently occupied.

Additionally, an increasing number of apartments are being converted to condominiums, further reducing the number of rentals available.

"The supply of apartments now is really tight. Demand is still so strong and people have to find a place to live," said Delores Conway, director of the Casden Real Estate Economic Forecast at USC's Lusk Center for Real Estate.

Eventually population will decline if the market for rental properties isn't allowed to grow.