San Diego Market Update: San Diego rents are among the highest in the country, by Denise Matthis.

By Denise Matthis

San Diego Rents Are Amongst the Highest in the Country

Recorded 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. 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.

Landlords, therefore, are perfectly taking advantage of this situation, and pricing their houses at the highest price possible. As said by Joshua Ohl, a managing analyst at CoStar, “Given the state of the market, and the strength of demand, landlords have so much pricing power for available units” In addition, most tenants were not paying rent during the pandemic due to the eviction ban by the government, which resulted in a 10 percent revenue loss for landlords. To compensate for these losses, Landlords have taken the rent increment decision as the best way. According to Lucinda Lilley, the Vice President at FBS Property Management, lumber and repairing appliances have become costly. They consequently have to increase rents by about 5 percent in all the 737 units in San Diego, so as to recover the costs incurred. It’s henceforth the right conclusion that the low vacancy rate and increased renting demand (which is directly proportional to increased wage rates that have given renters power to pay more), are the prime causes of high rents in San Diego.

It’s a city with enticing tourists attractions not forgetting the yearly warm weather. Most popular for all the beach and aquatic recreations. San Diego will continue recording high rent prices due to the need for shortterm rentals for tourists. The high-income growth rate and low supply of housing will continue pushing prices even higher. However, for anyone willing to live in San Diego, you don’t have to go through the uncertainties of rent fluctuations every month. Buying a home is the right thing to do! Buying comes with way more advantages than renting. Don’t let the high prices deny you the pride of becoming a homeowner. You can buy a home with as little as you have with especially in this market of low mortgage rates. Don’t hesitate to contact The Power Is Now Media Inc. a real estate incorporation with the best of professionals ready to guide you through homeownership acquisitions. Get in touch with the CEO and President of The Power Is Now Media Inc. Eric Lawrence Frazier MBA DRE 01143484 NMLS 461807, who is also a licensed mortgage advisor with First Bank. Alternatively reach out to Denise Matthias a VIP agent in San Diego, for guidance on how to become a homeowner in one of the most expensive real estate cities in the US.

ABOUT DENISE MATTHIS

Although not a true “San Diego Native”, Denise E Matthis has been a resident of San Diego since the age of 2. Denise is the Owner/Broker of DEM Financial Services & Real Estate, a boutique brokerage dedicated to promoting community pride through homeownership and building & preserving generational wealth with real estate. As a buyer’s representative, she is passionate and works with first-time home buyers and veterans educating them on the home buying process and works with investors. As a seller’s representative, she specializes in seniors, probate, and distressed property sales. To learn more about Denise, go to; https:// thepowerisnow.com/denisematthis/

ABOUT THE POWER IS NOW MEDIA INC.

The Power Is Now Media Inc. is an advocate for the empowerment of the minority communities all around the United States. We engage in various thoughts of leaders to make sure that you are equipped with knowledge about our economy. We have partnered with First Bank to provide you with products and services that will help you prepare better for the future. We are also advocating for first-time home buyers. The Power Is Now Media Inc. can help make your home ownership dream a reality. Go to www.neverrentagain.com and get started today. Eric Lawrence Frazier MBA DRE, Vice President and Mortgage Advisor of First Bank, NMLS 461807. President and CEO of The Power Is Now Media Inc. www.thepowerisnow.com

References

https://www.sandiegouniontribune.com/business/ real-estate/story/2021-08-13/san-diego-rentkeeps-rising https://www.costar.com/article/681746192/ apartment-rents-in-san-diego-urbanneighborhoods-outperformed-the-region https://weleaseusa.com/san-diego-rental-markettrends-2021/