SAN DIEGO — A new report from Realtor.com shows rental prices across San Diego County for homes with up to two bedrooms are down 2% from this same time last year.
The numbers
- The report puts the median price for those units at $2,891,
- 4th in the United States
- Behind only San Jose ($3,305), Boston ($3,043), and San Francisco ($2,925)
We're not talking about a fire sale in the rental market, but we are seeing rents move in a somewhat more rental-friendly direction,” said Danielle Hale, Chief Economist with Realtor.com.
Hale says rents nationwide have declined, albeit slightly, for five straight months. But here in San Diego, renters told CBS 8 that’s not what they’re experiencing.
“I'm a data scientist - I know that's false,” said North Park resident Hobson Lane. Hobson says he and several neighbors just received notices of rent increases between 5% and 9%. He fears many will be forced to move – a trend that is already affecting his neighborhood.
“The local businesses here in North Park are complaining because they can't find baristas and waiters and staff to staff the kitchens and that's all because they can't afford to live here,” he said. “They can't afford to commute here to make it worth their while.”
New apartment complexes are under construction across the county, including 531 new apartments going up right now in the spot once occupied by a Dixieline in Kearny Mesa.
The hope is that more housing supply will lower demand, pushing down prices. But many apartments under construction won’t be ready for at least another year. And making a bad situation worse, buying a home isn’t an option for many renters.
The combination of high housing prices and rising interest rates has priced many San Diegans out of the market.
“For a lot of families or households, it is still much more expensive to buy than it is to rent - so more households are choosing to rent for longer instead of navigating the for sale market,” Hale said.
By the way, Hobson's rent is below the median in that Realtor.com report, but if you're thinking about looking at his complex - he says there are a few things to know.
“It's a studio apartment. 400 square feet, keep that in mind. And we have a massive roach problem,” he said.
WATCH RELATED: Study: 36% of San Diegans can't afford to live in San Diego