San Diego rent prices see slight decrease after jumping more than 21% in a year
San Diego rents actually dropped last month after increasing more than 21% in a year.
The rental website Zumper found that the median price of a one-bedroom apartment was down 4.6% to $2,500 a month.
Rents in many areas of the country have decreased slightly, but San Diego’s is one of the biggest drops recorded in the nation.
The San Diego Union-Tribune senior business reporter Philip Molnar spoke on KPBS Midday Edition on Thursday about the possible relationship between lower rents and an increase in construction in San Diego.
More than 8,000 housing units have gone up this year. Most of the new construction is multi-family homes and the vast majority have been built in the cities of San Diego and Chula Vista.
Many areas of the county, including Solana Beach, Imperial Beach and Del Mar, have recorded fewer than 15 new housing units this year.
Molnar says San Diego was on track to have a record year for housing construction, but recent bumps in interest rates may slow that down.
The higher interest rates could dampen developer enthusiasm for new construction well into next year.