San Diego Multifamily/Apartment Rents Surge 5%
San Diego Multifamily/Apartment Rents Surge 5%
Apartment rents in San Diego increased 4.9% in the month of July, fueled by strong demand, compared to the national average of 2.8% apartment rent growth.
San Diego is experiencing rapid rent growth. Apartment rents in the market grew 4.9% in the month of July, according to a report from Yardi. The national average rent growth was 2.8% year-over-year for the same month. While July is typically a growth month for apartment rents, this year, rental rate growth has been consistently strong in San Diego.
“Strong demand for apartments is feeding off of limited supply and rapidly rising prices of single-family homes, a growing job market and the area’s relative affordability compared to other major cities in California,” says Nadia Balint. “A low to moderate amount of new construction—around 4,000 rental units are projected to be completed in 2018 in San Diego metro—is also driving rent growth in the area. Rents in San Diego are rising by 4.9% year over year, outperforming the national average of 2.8%.”
Rent growth was strongest for studio and one-bedroom apartments at 5.1% and 5.2%, respectively. Two-bedroom rent growth was 4.8% year-over-year, bringing the average to 4.9% for the month of July. Month-over-month, rents were relatively flat, falling 0.2%. “San Diego is one of the country’s most stable markets. The average rent was $2,144 in July, and is expected to continue rising at a rate of 3.5% to 4% in the second part of the year, factoring in seasonal slowdowns into the fall and winter seasons,” says Balint. “Barring extraordinary circumstances, demand for rental housing remains strong across the board thanks to continued job growth and a well-diversified local economy.”
As a result of the strong rent growth, apartment construction has increased. San Diego has 7,700 units in the construction pipeline, but some projects are delayed due to rising construction costs and labor shortages. In the meantime, while the market waits for more supply, there are rising affordability concerns. “Affordability concerns are causing rents in lower-priced apartments to advance faster than those in higher-end apartments,” says Balint. “However, with home-for-sale prices rising even faster than rents, the demand for rental housing translates into high overall occupancy levels in the San Diego market, which is above 96%.”
San Diego is one of the top markets in California for apartment rent growth, alongside Los Angeles. However, both markets are behind the Bay Area in terms of average monthly rental rates. “While rents in San Francisco and San Jose have started cooling over the last 2 years, advancing at an annual rate of 2.8% and 3.8%, respectively, growth in Southern California’s San Diego and Los Angeles is strong and steady by 4.9% and 4.6%, respectively, year over year,” explains Balint. “Apartment rents in San Diego, at $2,144, and Los Angeles, at $2,389, sit well below what renters pay in San Francisco, at $3,577, and San Jose at $2,760. “Much of the price difference is dictated by the strength of the job market in and around the Bay Area, consisting in large part of highly paid tech jobs. By these standards, renting in the San Diego is more affordable than in the other major California hubs.”
Article by GlobeSt
This is an ideal opportunity for any multifamily investor. Contact Pacific Coast Commercial's Multifamily Investment Specialists to learn more about how you can take advantage of this strong and growing demand.
Jan Sachs, Broker Associate, Investment Sales
Diane Campochiaro, Investment Sales Associate
Jarvis Leverson, Sales & Leasing
Article by GlobeSt
This is an ideal opportunity for any multifamily investor. Contact Pacific Coast Commercial's Multifamily Investment Specialists to learn more about how you can take advantage of this strong and growing demand.
Contact Information: (619) 469-3600
Mack Langston, Director, Multifamily & Investment Sales
Lic. 01110555
Jan Sachs, Broker Associate, Investment Sales
Lic. 01964760
Diane Campochiaro, Investment Sales Associate
Lic. 01884295
Jarvis Leverson, Sales & Leasing
Lic. 02034881
DISCLAIMER: This blog/article has been curated from an alternate source and is designed for informational purposes to highlight the commercial real estate market. It solely represents the opinion of the specific blogger/author and does not necessarily represent the opinion of Pacific Coast Commercial.
All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner of will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information.
Keywords: San Diego Commercial Real Estate For Sale, Commercial Property In San Diego, Commercial Real Estate In San Diego, San Diego Investment Real Estate, Commercial Property Management In San Diego, San Diego Commercial Property Management, Commercial Property Management San Diego, Managed Commercial Property San Diego, Commercial Property For Sale San Diego, San Diego Commercial Real Estate Leasing, Top Real Estate Agents in San Diego, Commercial Property in San Diego, Property Management Company San Diego, Real Estate Agent in San Diego,
|
Comments
Post a Comment