San Diego Rental Property Trends
San Diego continues to experience steady growth in the rental market. In fact, 2017’s America’s Finest City is among the top 10 cities for rental growth in the U.S.
Here’s why: The rental real estate market grew by 4.3 percent in 2016, and the fundamentals of the economy are strong.
San Diego is breaking ground all over the city with new developments in a variety of neighborhoods, including Gaslamp Quarter, North Park, South Park, Golden Hill, Hillcrest, Little Italy, Mission Valley and Fashion Valley, among other neighborhoods and districts. Furthermore, despite this explosion of new and planned developments, rental rates continue to rise in the city.
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What it Means for San Diegan Property Owners
Now is a great time to lease property in San Diego. According to the San Diego Union-Tribune, the average monthly payment was $1,743 at the start of September 2016. That is an 8.4 percent increase from last year—and we don’t expect this to fall.
Real estate experts attribute the rise in rent to a lack of new housing developments that is putting pressure on the market. Even in East County where monthly lease payments are typically affordable, such as El Cajon and La Mesa, the average price has risen to $1,422.
This trend isn’t new, of course. Rents in San Diego have been increasing between 8-10 percent per year, but for in-demand neighborhoods like Hillcrest and North Park, that figure is closer to 20 percent.
Downtown San Diego’s rental market, especially in the Gaslamp district and other areas around Petco Park, is 100.3% above the national average, bringing the area to the title of ninth most expensive metropolitan rental market in the U.S.
Pricing your property at the right price is important for attracting qualified residents for your property. Our property management team can help you determine the best rent price for your property so you can maximize your investment. Call us today to learn more!
About the San Diego Housing Market for Investors
San Diego’s housing market is an excellent market for property investors. Interest rates are still low among speculation the Fed would raise interest rates this year. Home prices are on the rise and many economists are forecasting nationwide growth. San Diego’s home market has kept pace with national trends, and in some cases has outpaced national price increases.
San Diegans need to earn an average household income of $103,165 to afford a median-priced home – that includes principal, interest, taxes and insurance payments. Realtor.com lists San Diego as one of the nation’s 10 hottest markets, and the number three on their list to watch in 2016.
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