Coastal markets dominate while Inland Empire and outlying areas face unprecedented demand
Southern California’s rental market is entering peak season 2025 with some of the most competitive conditions in the state, as coastal desirability collides with severe housing shortages across the region, according to new data from RentCafe’s analysis of Yardi data.
Orange County has emerged as the region’s most competitive rental market, ranking second statewide, just behind Silicon Valley, with a score of 76.2. The market shows 95.5 percent occupancy with 12 prospective renters competing for each available unit, despite averaging 43 vacant days—the longest turnover period among competitive markets. Most remarkably, the data indicates zero new unit construction in Orange County, while landlords implement a 61.7 percent lease renewal rate, the highest in California, suggesting a strategy entirely focused on retaining existing tenants in the absence of new supply.
San Diego follows as the region’s second-most competitive market, ranking third statewide with a score of 75.8. The coastal city maintains 94.8 percent occupancy with 13 prospective renters per unit and 39 average vacant days. Landlords there pursue a 64.6 percent lease renewal rate while adding a modest 0.68 percent of new units—more than Orange County but still minimal given demand pressures.
Eastern Los Angeles County claims fourth place statewide with a competitive score of 74.1, showing the highest occupancy rate in the region at 96.0 percent. The market attracts 15 prospective renters per available unit with 42 average vacant days, while landlords maintain a 50.4 percent lease renewal rate and add 0.65 percent new inventory.
The Los Angeles basin’s rental pressure extends across multiple submarkets. North LA-Ventura County ranks seventh with a score of 72.0, demonstrating 95.4 percent occupancy and 12 prospective renters per unit. Properties average 44 vacant days, and while landlords implement a 53.6 percent lease renewal rate, new construction represents just 0.33 percent of total units—among the lowest in the state.
Western Los Angeles County, despite ranking eleventh overall, still shows a competitive score of 64.2 with 92.2 percent occupancy—the lowest among measured markets but still indicating a tight rental environment. The market attracts 9 prospective renters per unit with 44 average vacant days, a 43.8 percent lease renewal rate, and 0.73 percent new unit construction.
Inland Empire, traditionally Southern California’s affordability valve, now ranks eighth statewide with a competitive score of 71.3. The region shows 94.9 percent occupancy with 13 prospective renters competing for available units, 45 average vacant days, and landlords pursuing a 54.2 percent lease renewal rate. New construction stands at 0.64 percent, suggesting even the region’s historically more accessible markets are struggling to keep pace with demand.
The data reveals a Southern California rental landscape where coastal desirability, limited geographic expansion options, and minimal new construction create intense competition across all price points. Orange County’s zero new construction stands as perhaps the most dramatic illustration of the region’s supply constraints, while even outlying markets like the Inland Empire—once considered relief valves for priced-out renters—now show competitive scores above 70.
Lease renewal rates across Southern California tell a story of landlord pricing power and tenant reluctance to enter a brutally competitive market. Orange County’s 61.7 percent rate and San Diego’s 64.6 percent rate suggest that existing tenants are increasingly opting to accept renewal terms rather than face double-digit competition for limited alternatives.
For Southern California renters entering the peak summer moving season, the numbers underscore a challenging reality: with occupancy rates consistently above 94 percent, vacancy periods under seven weeks, and prospective renter competition reaching 15-to-1 in some markets, available units require immediate action. The region’s diverse markets—from ultra-premium coastal enclaves to more modest inland communities—share remarkably similar competitive dynamics, suggesting few easy alternatives for those seeking housing.
The combination of geographic constraints, regulatory challenges, and sustained population and employment growth continues to strain Southern California’s housing supply. As the region heads into peak rental season 2025, minimal new construction across all major metros and sustained demand suggest these competitive conditions will persist, with little relief in sight for prospective renters across the Southland.
