Deflationary pressure? Maybe. I’ve been seeing it elsewhere.

Santa Monica rents have declined 3.4 percent over the past month. “This is the eighth straight month that the city has seen rent decreases after an increase in February,” the report reads.

Most rentals in SM are apartments. And most of the apartments in Santa Monica are governed by rent control. Those are price ceilings (unlike minimum wage, which is a price floor). So, what’s going on here?

Source: Rent Index for Santa Monica Down 13 Percent Since Start of Pandemic – SM Mirror