San Diego County Apartment Rents Remain Cheaper Since Recession
Tuesday, December 4, 2012
Aired 12/4/12 on KPBS News.
The San Diego County Apartment Association says rents are cheaper today in San Diego than they were five years ago.
SAN DIEGO The average prices of one- and two-bedroom apartments in both the county and city of San Diego are running about $100 dollars a month below prices five years ago, according to a new report.
A San Diego County Apartment Association survey found a one-bedroom in the county costs on average $1,089 today, but $1,177 five years ago. A two-bedroom in the county goes for on average $1,389 today, but $1,475 five years ago.
The twice-yearly survey found rents inching up year to year, but still running below where they were at the peak of the real estate bubble.
The report also finds prices will likely remain soft because so many new rental units will hit the market soon.
"I think 3,500 is the last number I saw, total, in the region coming online in the next 18 months to two years. And that's a lot of inventory coming in, so what is that going to do with the rents and the ability for rent growth," said Alan Pentico, executive director of the San Diego County Apartment Association.
There's also a strong demand for three-bedroom units, and that might be linked to the foreclosure crisis that California is currently working through, according to Pentico.