29 Sep San Diego real estate report: Rental rates to rise by record numbers by 2019
Get ready for sticker shock if you’re searching for rentale real estate in San Diego County.
Over the next five years, rents are expected to increase nearly double the amount they did during the previous decade, according to rental forecasts by CBRE, a commercial real estate company headquartered in Los Angeles. The numbers are sobering, considering the median housing price for San Diego real estate is $445,000 — and growing — and affordable real estate in San Diego is an issue.
From 2004 to 2014, average rents rose from $1,242 to $1,542 per month in the county – nearly a 25 percent increase. In five years, that amount is expected to reach $1,830 a month, which is nearly 20 percent more than current averages.
The rising rentals could push more homeowners to buy property – or push renters unable to afford riding rents out of the area all together. Despite the move towards higher rental prices, demand is still on the upswing, driven by young people moving out of their parents’ homes, former homeowners renting in some cases, and the increased difficulty qualifying for a mortgage post housing crisis.
Vacancies in San Diego are at historic lows — 2.6 percent according to a report released by Cassidy Turley – and is the second-lowest in the country behind San Jose. To ease demand, 8,600 rental units are under construction, with many located downtown.