LA County Rents Drop to a Four-Year Low, but Housing Still a Stretch for New Grads

Recent college grads heading to Los Angeles County in California are entering a rental market that’s more affordable than it has been in years, but housing costs remain high for many people just starting their careers, according to a new report by Realtor.com.

The median asking rent in LA County 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.

Realtor.com noted that 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% year over year. Realtor.com noted that 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 eat up 25.7% of a graduate’s salary, compared with 38.2% in New York City.

While rents are 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, Realtor.com said.

National Rent Market

By comparison, Realtor.com said that the national rental market presents a more manageable affordability picture for recent graduates.

Across the nation’s 50 largest metros, the median asking rent for a studio apartment would consume 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.”

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 said it 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.

Realtor.com noted that the lower rents 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 trove of new multifamily construction has added more inventory.

Smaller Apartments

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, Realtor.com said.

A lot of that relief is 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 fell 3.6% year over year to $2,255, while rents for larger three-plus bedroom units fell 3% to $3,441.

Also, Realtor.com said that a surge in accessory dwelling unit (ADU) construction and multifamily development over the past few years 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,” Xu said. “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.”

Within the City of Los Angeles, Realtor.com said that the median asking rent fell to $2,742 in the second quarter, down 2% from a year ago. 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 about $109,680, roughly 23.6% higher than the city’s estimated median household income.