CITY HALL — Average advertised rental rates in Glendale rose as much as 8% during a three-month period in spring, even as other cities saw their rents decrease, according to a city report.
From March to May, the average advertised rents for one- and two-bedroom units grew as much as 2.9% to an average $1,511 and $2,104 per month, respectively, according to the Quality of Life Indicators report released last month. The average rate for three-bedroom units in May was $2,277, representing an 8% increase.
Meanwhile, advertised rental rates in Burbank during the same time period decreased for one- and three-bedroom units, while advertised rates in Pasadena fell for two- and three-bedroom units.
Paul Habibi, professor of real estate finance at the UCLA Anderson School of Management, said he was surprised by Glendale’s rate increase because most cities have seen the opposite as a result of the recession.
“Overall, it’s a renter’s market,” he said. “Landlords are fighting tooth and nail to keep tenants.”
A landlord himself of units mainly in the Santa Monica and Los Angeles area, Habibi said his business has lowered rental rates by between 10% and 12%.
Habibi said the increases in Glendale were likely fueled by an addition of luxury apartments or condominiums for rent, which can artificially spike average rates.
“It’s most likely a shift in the unit mix,” he said. “That’s a likely culprit for it.”
The survey results come at a time when community members have complained about a lack of affordable rental housing options. In a recent community survey conducted by the city’s Community Development and Housing Department, residents made their frustrations known, said Moises Carrillo, senior community development supervisor.
“A lot of concerns were related to rents or even keeping with the current rent, again because of the economy,” he said.
Of the series of anonymous comments compiled from the survey results, many complained of high rental prices within the city or called for rent control, according to the survey.
“The city of Glendale needs rent control,” one resident wrote.
“The price of renting in Glendale drastically increased in the past five years.”
Between 2007 and 2009, average rental rates increased by 19%, according to city statistics.
The City Council, arguing that rent control brings with it a whole set of less savory community impacts, has steered clear of the policy, instead relying on a slew of federally subsidized affordable housing projects that have brought hundreds of below-market rentals to mostly south Glendale.
Mayor Frank Quintero said he was surprised to hear that a survey showed average rates had increased, as he has seen a high number of “For Rent” signs posted throughout the city.
“I’m a little surprised that it shows an increase because there’s much more product available on the market,” he said.
“But those are the ebbs and flow of the real estate market, and Glendale is a very desirable place to live.”
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