Rents Decline In Santa Monica As Part Of Downward LA County Trend, Study Finds

Rents in Los Angeles County have fallen to their lowest level in four years, including in Santa Monica, a new Realtor.com study has found.

Rental market trends varied across Los Angeles County, with higher-priced coastal areas seeing some of the steepest declines. In Santa Monica, median asking rents fell 2.6% to $4,187, while Beverly Hills saw a 9.3% drop to $4,574.

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Even higher-end markets such as Malibu also posted declines, with rents down 3.6% to $14,871.

The median asking rent for the county as a whole dropped to $2,520 in the first quarter of 2026, down $97, or 3.7%, from a year ago and well below the peak reached during the pandemic-era surge in 2022, according to Realtor.com.

Despite the decline, economists said rents remain high relative to incomes, requiring a household to earn more than $107,000 annually to afford a typical unit in Los Angeles.

``Los Angeles is a market in transition,'' Realtor.com Chief Economist Danielle Hale explained 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 the city of Los Angeles, the median asking rent was $2,682 in the first quarter, down 3.5% from a year earlier, according to the report.

The gap between current asking rents and what many tenants actually pay remains significant, with the median contract rent at $1,804 in 2024 -- more than $1,000 lower than current listings.

Analysts said that disparity has contributed to a growing number of renters staying in place, with more than 86% of tenants remaining in the same unit year over year.

Recent policy changes are also expected to shape the market. A revised Rent Stabilization Ordinance set to take effect in July will cap annual rent increases at 4%, down from a previous limit of 8%, and apply to roughly three-quarters of rental units in the city.

City News Service contributed to this report.