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High-income earners choosing to rent instead of buy in San Diego

A new study shows San Diego ranks seventh nationwide with the highest number of renters who make more than $150k per year.

SAN DIEGO — More and more people making six figures a year are choosing to rent instead of own in San Diego.

They're called high-income renters or households making more than $150,000 annually.

According to a study published by apartment search website Rent Café, San Diego is a high-income renter hotspot, ranking number seven nationwide behind cities like San Francisco, Seattle, and New York.

“Everybody knows there's a shortage of housing, especially in California. So, what do you do if their housing supply or stock isn't available? You rent," said Doug Ressler with Yardi Matrix, the company behind the study.

Using data collected from the 2020 census, the study found 12.4 percent of renters in San Diego are high-income earners - the number of high-income renters here increased dramatically, going from 18,000 in 2015 to 33,400 in 2020.

While the pricey and competitive housing market does play a role, Ressler says it wasn't the most significant contributing factor.

So, what was it? "Safety and convenience," said Ressler.

Ressler said rentals, specifically luxury condos, and apartments, offer specific amenities homeownership doesn't. Plus, less maintenance.

Ressler said San Diego has more high-income earners moving here due to a growing number of good-paying jobs in the life-science field.

"San Diego, in terms of life science, moved from number five position nationally to number three, almost number two. It's about the sciences in terms of either you're developing pills, you know, antibiotics, you're doing things with immune technology, things like that," said Ressler.

Overall, Ressler says the high-income earners who rent choose to do so even though they can afford to buy.

But, some argue home ownership isn't attainable even with a six-figure salary, especially as housing prices in San Diego have skyrocketed.

According to the National Association of Realtors, the average home price in San Diego is 857,000 dollars.

On Twitter, people responded to the study.

Shea Benton wrote:

"That's because it's impossible to buy here, even if you're making $150k a year unless you've been making that since college (highly unlikely) and consistently saving. 34, been making good money since 25, still can't afford to buy."

Ken Stone said:

"Like they have a choice."

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