In a report released by the real estate website Realtor.com on July 30th, it was revealed that apartment rents in Los Angeles County have dropped to their lowest levels in nearly four years in the second quarter of 2026. Despite this decrease, housing expenses still account for approximately one-third of income for many recent college graduates, posing a significant financial burden.
According to a report by a local news agency, the median rent for apartments in Los Angeles County from April to June this year stood at $2,603 per month, marking a 3.4% decrease compared to the same period last year, making it the lowest quarterly median rent since the end of 2021. The report attributed the decline in rents to an increase in the construction of multifamily housing and accessory dwelling units (ADUs), expanding the supply of rental housing, especially for small apartments.
However, the report also highlighted that despite the drop in rents, housing costs remain a heavy financial burden for many recent college graduates entering the workforce.
According to analysis by Realtor.com, a typical studio apartment in Los Angeles County rents for $2,004 per month, accounting for approximately 25.7% of estimated income for computer science graduates, 30.4% for business school graduates, 31.6% for social science graduates, and 32.8% for communication studies graduates. Economist Jiayi Xu from the website stated, “After experiencing years of rent hikes, renters in Los Angeles are finally seeing significant relief, but the decrease in rents doesn’t necessarily mean recent graduates can easily afford housing.”
She added, “Even with the recent decline in rents, many recent graduates still have to allocate around 30% or even more of their income towards rent. While the situation is improving, many entry-level workers in various industries still face difficult trade-offs when it comes to housing.” Adjusted based on salary forecasts from the National Association of Colleges and Employers and local salary levels in Los Angeles, Realtor.com estimated that the annual salaries for recent graduates in computer science, business, social sciences, and communication studies in Los Angeles County are approximately $94,000, $79,000, $76,000, and $73,000 respectively.
The report noted that since the peak in rental prices in 2022, the asking rents in Los Angeles County have dropped by 9.6%, resulting in an average monthly savings of around $276 for typical renters. Median rents for apartments with less than two bedrooms have decreased by 3.6% compared to the same period last year, to $2,255 per month, while rents for residences with three bedrooms or more have seen a 3% decrease to $3,441 per month.
In the city of Los Angeles, the median rent for apartments in the second quarter of this year was $2,742 per month, representing a 2% decrease from the same period last year. Realtor.com estimated that for a family to keep housing expenses within 30% of their income, an annual income of approximately $109,680 is needed.
The report also found that a majority of those searching for rental information in Los Angeles County currently reside in the local area. In the second quarter of this year, 58.1% of online traffic for rental information in Los Angeles County came from residents within the county, 18.4% from other parts of California, 18.9% from other states, and 4.5% from overseas.