San Diego rent prices have dropped 5 months in a row. See if they dropped in your area


There’s a chance it might be easier to be a San Diego renter next year.

San Diego County rents are ending the year down from previous highs, following a national trend. The average monthly rent for a county apartment is $2,397 a month, said real estate tracker CoStar. That’s down from $2,406 a month to start the year.

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A 0.4 percent drop in rents in a normal market would be hardly notable, but this is San Diego we’re talking about. Rent was up 13.4 percent in a year to start 2022, and it’s rare to find much historical precedent for drops. In CoStar records going back to 2000, the biggest drop was a 2.2 percent annual reduction in the third quarter of 2009.

Most of the rent reductions have only happened in the last half of this year, with December marking five months of rent declines in San Diego County.

Joshua Ohl, CoStar director of market analytics, said this year featured a correction in asking rents after a substantial surge near the end of the pandemic.

“Right now, I think we are just correcting for that huge surge we saw in rent,” he said.

CoStar forecasts San Diego County rent will continue to drop through the first six months of next year, and then start rising again, finishing the year around $2,490. The prediction is not because of some geopolitical reason, interest rate change or anything specific. It’s just more likely when looking at San Diego’s history that we get back to the usual 3.5 persent to 4 percent annual rise.

Rent changes can vary a lot across the county. For instance, the La Jolla and UTC area has seen rents drop 4 percent in a year, but Chula Vista is up 3.3 percent. Still, even the areas with increases aren’t matching the blistering increases of the past few years.

Rental website Zumper also predicts a sluggish start to next year for landlords, according to its recently released annual rental report. It said the national rent median for a one-bedroom was $1,496 a month, down a tenth of a percent annually.

Zumper said 55 cities — including San Diego — were down year-over-year in its list of the 100 largest cities. There were also 17 cities that were flat. Outliers were New York City, up 11.2 percent, and Chicago, up 16.7 percent.

It predicted rent gains would be sluggish next year in the Sun Belt and other areas of the nation where multifamily construction greatly picked up. Those same type of oversupply issues aren’t expected on the West Coast.

Zumper also surveyed renters and found many aren’t as thrilled about the prospect of buying a home, which has seen its price rise despite higher mortgage rates. It reported 69 percent of renters said rising interest rates have deterred them buying or looking into buying a home. It cited a report from CBRE that found the average monthly new mortgage payment was 52 percent higher than renting.

The monthly mortgage for a San Diego County median price home, $850,000 in November, is around $4,799, considerably more than the region’s $2,397 average rent. That assumes 20 percent down on a fixed-rate mortgage, with a 6.67 percent interest rate — the average Thursday morning, said Freddie Mac.

CoStar breaks down the rent by unit size. It said the average for a San Diego County studio is $1,854 a month; $2,107 for a one-bedroom; $2,581 for a two-bedroom; and $3,246 for a three-bedroom.

Here’s how rent breaks down by region:

La Jolla/UTC

A surfer rides a wave in La Jolla earlier this month.

(K.C. Alfred/The San Diego Union-Tribune)

Average monthly rent: $3,161
Annual decrease: -4 percent

This is San Diego County’s second-most expensive neighborhood, which has a vacancy rate of 4.2 percent.

Central Coast

Ingraham Street running through the Crown Point area of Pacific Beach.

(K.C. Alfred/The San Diego Union-Tribune)

Average monthly rent: $2,252
Annual decrease: -2.4 percent

This area includes Pacific Beach, Mission Beach, Ocean Beach, Point Loma and Coronado. The vacancy rate is 6.8 percent.

Downtown San Diego

Downtown San Diego in mid-November.

(Nelvin C. Cepeda/The San Diego Union-Tribune)

Average monthly rent: $2,946
Annual decrease: -1.4 percent

Downtown has the highest vacancy rate in the county at 8.1 percent.

North Shore Cities

Visitors to the San Diego Botanic Garden in Encinitas.

(Meg McLaughlin/The San Diego Union-Tribune)

Average monthly rent: $3,387
Annual decrease:: -0.1 percent

This area includes Del Mar, Encinitas and Solana Beach and is the county’s most expensive rental market. The vacancy rate is 4.4 percent.

Mission Valley/North Central

San Diego FC’s pop-up retail store in Mission Valley.

(Brittany Cruz-Fejeran)

Average monthly rent: $2,746
Annual increase: 1.1 percent

This area includes Mission Valley, Clairemont, Kearny Mesa, and Allied Gardens and has a vacancy rate of 5.1 percent.

South I-15 Corridor

Commuters exit northbound I-805 in Sorrento Valley surrounded by green and mustard covered hills in late April.

(K.C. Alfred/The San Diego Union-Tribune)

Average monthly rent: $2,923
Annual increase: 1.5 percent

This area includes Sorrento Valley, Miramar and Mira Mesa and has a vacancy rate of 5.1 percent.

Balboa Park

New new bike lanes along Park Boulevard in University Heights in late June.

(Nelvin C. Cepeda/The San Diego Union-Tribune)

Average monthly rent: $1,880
Annual increase: 1.7 percent

This area includes North Park, University Heights, Hillcrest and South Park. It still has some of the oldest rental supply in the region, keeping averages low, and a vacancy rate of 4.6 percent.

Poway/Santee/Ramona

The last days of the fall colors bloom along the shore of Lake Poway.

(K.C. Alfred/The San Diego Union-Tribune)

Average monthly rent: $2,081
Annual increase: 2.1 percent

This East County area has a vacancy rate of 3.7 percent.

North County

A jogger climbs the rusting stairway at Sycamore Avenue in Carlsbad.

(Phil Diehl)

Average monthly rent: $2,398
Annual increase: 2.4 percent

This area includes Oceanside, Carlsbad and Vista and has a vacancy rate of 3.4 percent.

East County

Barbara Severin Worden takes a photo of the marker on the Northeast corner of Murray and Severin Drive at the pedestrian park at La Mesa in late July.

(Alejandro Tamayo/The San Diego Union-Tribune)

Average monthly rent: $1,894
Annual increase:: 2.5 percent

This includes La Mesa, El Cajon, Grossmont, Rolando Village, Talmadge and College Area. The vacancy rate is 3.7 percent.

National City/South Central

Tacos El Villasana on its last night in National City in early November. They later moved to Chula Vista.

(Alejandro Tamayo/The San Diego Union-Tribune)

Average monthly rent: $1,894
Annual increase: 2.7 percent

This area has a vacancy rate of 2.8 percent.

North 1-15 Corridor

Lake San Marcos in early December

(Alejandro Tamayo/The San Diego Union-Tribune)

Average monthly rent: $2,332
Annual increase: 3 percent

Vacancy is 3 percent in this area, which includes Escondido and San Marcos.

Chula Vista/Imperial Beach

A Christmas tree is illuminated near the Imperial Beach Pier.

(K.C. Alfred / The San Diego Union-Tribune)

Average monthly rent: $2,326
Annual increase: 3.3 percent

This area has a vacancy rate of 5.8 percent.

Outlying San Diego County

A barn seen from Highway 79 near Julian in November 2019

(Hayne Palmour IV/The San Diego Union-Tribune)

Average monthly rent: $2,181
Annual increase: 5 percent

Neighborhoods in this sector include Julian, Campo, Jacumba Hot Springs and Alpine. The vacancy rate in this area is 5.1 percent.



This article was originally published by a www.sandiegouniontribune.com . Read the Original article here. .