18 May Trending Rental Rates, San Diego
Trending Rental Rates, San Diego
For those who own rental property in San Diego, the 2017 rental revenue trend is positive. With elevated home prices and the imminent rise in mortgage rates in late 2016, renters outweigh buyers. As a result, vacancies are tight, and rents are high. Over the last few years, rents have been on an upward trend. And, while this is bad news for renters, it is great news for rental property owners. The reality is, with trending rental rates, San Diego renters now pay an average of $1,500 for a one bedroom.
San Diego remains the forth most expensive rental market in California…
Why San Diego is so Expensive
The cost of living in San Diego is much higher than other cities throughout California. Whether it is the sunshine that attracts many, or the sweet smell of ocean air. Cities along the coastline tend to have the highest housing prices. But, just like any area with an expensive housing market. There is a low supply of housing to meet the high demand in San Diego. In fact, the San Diego rental market is now much like the San Francisco and New York rental markets. What makes San Diego so expensive is the fact that developers cannot keep up with the growing housing market demand. A demand bought on by the growth in San Diego’s population. Among other things…
The growth in San Diego’s population…
The Growth of San Diego
San Diego has experienced growth. Job growth and population growth are factors the have been driving the San Diego rental market. As of November 2017, San Diego County began to rank in the top 10 metro area for startups. Number one in California for life sciences, San Diego experienced a significant job growth. The newest companies to enter the San Diego market, include bio and tech firms. And, individuals who work for these types of companies typically make more money. As a result, there are plenty of tenants that can afford rising rental rates.
A Robust San Diego Rental Market
While many might say the San Diego rental market will slowly die down. The reality is, it will. However, with higher mortgage rates, and an unknown factor of, will they rise again. Coupled with the fact that one must have at least 20% down. And, add to that one must afford the luxury of living in an area they desire. These facts only mean one thing. The San Diego rental market will remain robust, it just might rise a tad bit slower.