Los Angeles County Rents Fall to a Four-Year Low, but Housing Still Stretches New Graduates' Budgets

Lower Asking Rents Offer Some Relief, Though Many Class of 2026 Graduates Still Face Affordability Challenges in Realtor.com^®'s Q2 2026 Los Angeles Rental Report

AUSTIN, Texas, July 30, 2026 /PRNewswire/ -- This year's college graduates heading to Los Angeles County are entering a rental market that's more affordable than it has been in years, but housing costs remain high for many just starting their careers. The median asking rent fell to $2,603 in the second quarter of 2026, down $91, or 3.4%, from a year earlier and the lowest level since the end of 2021, according to the Q2 2026 Los Angeles County Rental Report from Realtor.com^®.

While Los Angeles renters are catching a break, rents are moving the opposite direction on the other coast. New York City rents climbed to $3,707 in the second quarter, the highest level Realtor.com^® has recorded since it began tracking the market in 2019, with Manhattan rents up 9.0% year over year. For this year's graduates, the gap is stark: based on each market's typical new Computer Science graduate's salary and local studio rent, a studio in Los Angeles County would consume 25.7% of a graduate's salary, compared with 38.2% in New York City.

Even with rents easing in Los Angeles, a typical studio apartment would consume 30.4% of a Business graduate's salary, 31.6% of a Social Science graduate's salary and 32.8% of a Communications graduate's salary.

By comparison, the national rental market presents a more manageable affordability picture for new graduates. Across the nation's 50 largest metros, the median asking rent for a studio apartment would consume just 20.9% of a Computer Science graduate's projected national average starting salary, 24.8% of a Business graduate's salary, 25.8% of a Social Science graduate's salary and 26.8% of a Communications graduate's salary.

"Los Angeles renters are finally seeing meaningful relief after several years of exceptionally high rents, but lower asking rents don't necessarily make housing affordable for recent graduates," said Jiayi Xu, economist at Realtor.com^®. "Even with recent declines, many new graduates will still spend around or more than the recommended 30% of their income on rent. While conditions are improving, entry-level workers in many fields continue to face difficult housing tradeoffs."

Studio Rent as a Share of Class of 2026 Graduate Salary, 2026 Q2

Using Class of 2026 salary projections from the National Association of Colleges and Employers, adjusted with a 15% geographic premium to reflect Los Angeles wage levels, Realtor.com^® estimates a Computer Science graduate would earn roughly $94,000, a Business graduate $79,000, a Social Science graduate $76,000 and a Communications graduate $73,000 annually in Los Angeles County.

New Supply Eases Rent Pressure for Graduates
The lower rents facing this year's graduates reflect a market that has steadily cooled over the past several years. After rebounding quickly from pandemic-era declines and peaking during the summer of 2022, Los Angeles County rents have softened as a wave of new multifamily construction has added inventory to the market.

The median asking rent now sits 9.6% below its 2022 peak, representing a monthly savings of $276 for the typical renter compared with peak pricing.

Much of that relief has been concentrated among smaller apartments, where recent graduates are most likely to begin their housing search. The median asking rent for units with zero to two bedrooms declined 3.6% year over year to $2,255, while rents for larger three-plus bedroom units fell 3.0% to $3,441.

A surge in accessory dwelling unit (ADU) construction and multifamily development over the past several years has likely increased the availability of smaller rental units, helping ease price pressure for renters seeking more affordable options.

"The increase in rental supply is giving Los Angeles renters more options, especially those looking for smaller, entry-level units," said Xu. "For recent graduates entering the market, that added supply can create more opportunities to find housing at a time when affordability remains a major consideration."

Los Angeles County Rents by Unit Size, 2026 Q2

City of Los Angeles Rents Remain Elevated Despite Cooling Market
Within the City of Los Angeles, the median asking rent fell to $2,742 in the second quarter, down 2.0% from one year earlier. While rents have steadily moderated since reaching a peak in 2022, they remain 3.8% above pre-pandemic levels.

Even so, affording the typical rental while following the standard 30% income guideline requires an annual household income of roughly $109,680, about 23.6% higher than the city's estimated median household income.

Most Renters Are Staying Close to Home
Los Angeles County continues to draw renters primarily from within the region. During the second quarter, 58.1% of online traffic to Los Angeles County rental listings originated from within the county itself, while another 18.4% came from elsewhere in California. Out-of-state renters accounted for 18.9% of listing traffic, while international users represented 4.5%.

Methodology
Los Angeles County rental data are based on all units advertised for rent on Realtor.com^® during 2026 Q2. Rental units include apartments as well as private rentals, including condominiums, townhomes, and single-family homes. Realtor.com^® uses rental sources that reliably report listing data each month throughout Los Angeles County. Quarterly median asking rents are calculated by averaging the monthly median asking rents for each of the three months in the quarter.

About Realtor.com^®
For over 30 years, Realtor.com^® has connected buyers, sellers, and renters with trusted insights, professional guidance, and powerful tools to help them find their perfect home. Recognized as the No. 1 real estate site REALTOR^® agents recommend, Realtor.com^® delivers consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media contact: Janice McDill, [email protected]

SOURCE Realtor.com