By Denise Matthis
San Diego Rents Are Amongst the Highest in the Country
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ecorded by Zumper National Rent Report, San Diego is amongst the top ten cities with the highest rent price in the US.San Diego rents are at $2075 per month depicting a 9 percent increment year over year according to CoStar Real estate tracker August 2021. There was an annual rate of increase of 11.8percent Year over year in 3Q of 2021 and as per predictions this will raise to 12.1 percent in 4Q and 12.7 in 2022. The average rent price of a one-bedroom is $1823, a two-bedroom apartment at $2222, a 3 bedroom rent at $2794, and a studio at $1627 monthly. These rents are unaffordable for most people despite the high wage rates offered. REASONS FOR HIGH RENTS IN SAN DIEGO The increment in rents has been associated with the high median house prices, which have forced many potential homebuyers to prefer renting. WWW.THEPOWERISNOW.COM
San Diego is amongst the third most expensive real estate market with a median home price of $865,000, which raises the demand for rentals as most people cannot afford to buy a house. This is mainly due to the low inventory Supply which is at 1.5 months. A low vacancy rate resulting from the decreased supply of houses due to less construction of new houses. There has been a 20-year low vacancy rate of 3 percent. San Diego had implemented a 4.1 percent rent cap in May, purposed to keep current renters’ cost down due to the pandemic, this however has recently been passed to anyone signing for a new house lease especially after the law was loosened in August. This has therefore made it easy for most people to rent, leading to high rent demand. Landlords are hence seizing this opportunity and asking for more new leases. l
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