Apartment Rents / San Diego County
When analyzing apartment rents, a January 16, 2015 article in the San Diego U-T outlined that San Diego County renters can expect increases approaching 4% this year as vacancies continue to fall. The Los Angeles-based firm TruAmerica Multifamily said the trends reflect San Diego’s inability to keep up with demand.
“Household formation is outpacing new supply of apartments, so it will be a tight market this year,” Greg Campbell of TruAmerica stated. He later was quoted as saying that during the downturn a few years ago, the San Diego apartment market didn’t fall as much as in other areas such as Los Angeles, San Francisco, and Orange County. “We think it’s more of a steady market and rent growth,”, Mr. Campbell reported.
The County’s vacancy rate stood at 3.6% in September 2014, according to MarketPointe Realty Advisors firm. Since a 5% vacancy rate usually signifies an even balance between supply and demand, a lower rate indicates tighter conditions and usually leads to higher rents, although local conditions dictate the situation at any given property. MarketPointe’s September 2014 apartment survey showed a rental rate of $1,515 per month, up 3.9% from a year earlier.
Another U-T article on Friday January 23, 2015 reported that a panel of experts at a recent Urban Land Institute chapter meeting cites limited construction and very low vacancy levels for apartment rents to rise in 2015. “Vacancies have sunk below 3 percent level in many neighborhoods,” as reported by the meeting moderator Mr. Peter Dennehy. Average rents were projected to rise 3.4% in 2015, with an average of $1,560. The panel projected average apartment rents to rise to $1,846 by 2019, an increase of 18% over a four year period.