SAN DIEGO - Rental prices in the San Diego area are among the most expensive in the U.S. Department of State, with the rising cost far outpacing its West Coast counterparts since the COVID-19 pandemic began, according to a Zumper report released Tuesday. That increase is also felt in the larger metropolitan area, with the rate of a room in Chula Vista increasing by almost 40% since last year, while prices for it in Oceanside rose by almost 30% in the same period. Jeff Andrews, senior market analyst at Zumper, who wrote the report, said San Diego's rental patterns are more like cities in the center of the country than cities on the West Coast and cited two reasons why.
The first was due to the pandemic with “transplant cities such as New York City, Los Angeles or San Francisco, where workers leave for periods of time or permanently, in some cases, as work-by-home configurations became commonplace. Andrews sees San Diego differently, as many in the city remained waiting for the pandemic to pass, keeping the market relatively tight for renters. The other reason is due to the high cost of real estate, which effectively “traps tenants in the market,” he said. Renters looking to become homeowners face stiff competition in San Diego, as city home prices continue to rise and outperform much of Southern California.
Lucinda Lilley, president of the Southern California Rental Housing Association, said the countywide vacancy rate is 1.25 percent for all types of rentals. San Diego's stunning scenery and ocean front breeze make it the perfect place to live in California. She said single-family rentals are popular, but it's important to remember that all types of rentals are in high demand, not just homes. Brown says that even with the increase in rent across San Diego County, some units receive 50 offers on the first day.
The San Diego Housing Commission approved the rent increase following a formal request from your landlord. Corporate owners are estimated to own 1.5 to 2 percent of single-family homes in the United States, according to the National Rental Home Council and other industry observers. The U.S. Navy has a strong presence in the area, as does the University of California at San Diego and the San Diego Unified School District.
Rents across the region increased nearly 30 percent last year, and if you're lucky enough to be able to afford a home, good luck finding one. However, despite its high cost of living, it is still cheaper than other California access points, such as San Francisco. When I arrived in San Diego 56 years ago, residents seemed frugal, and few drove modern cars and had stylish TVs and other appliances. An Attom study earlier this year found that San Diego County would have one of the smallest returns on investment for homeowners because the purchase price is much higher than in other parts of the country, particularly in the south.
SAN DIEGO While San Diegoans continue to feel the strains of expensive housing, a new study confirms that rental prices across the county have risen dramatically in the past year.