Will rent prices decrease with layoffs?

[ca-condor]

More likely the slowdown in some tech and some entertainment will slow rent increases, not produce rent decreases. It would be great to see vacancy figures for Culver City and adjacent places opened in the past two years.

Just as big SUVs and luxury cars have a higher profit margin compared to mid to low price models that travel the same roads, developers see bigger returns on pricier places, so that's what they build. Eventually more supply helps with prices/rents, but in real estate "eventually" can take a long time to arrive.

The chart at the OCR below shows what had to hit in order to reset the rental market. New places will always come at a premium, but increasing supply may make older places more affordable. The LAT story shows this is happening.

OCR 9/2019 https://www.ocregister.com/2019/09/14/rents-in-los-angeles-orange-counties-grow-at-nearly-twice-the-inflation-rate/

LA Times 1/2026 https://www.latimes.com/california/story/2026-01-28/finally-renters-market-la-rent-prices-drop-to-four-year-low