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San Diego rent costs soar

Posted by The Aramco Group on Tue, Sep 27, 2016 @ 14:09 PM

The cost of renting an apartment in San Diego County has climbed nearly eight percent since March, according to MarketPointe Realty Advisors. Analysts are attributing the rapid increase to the number of new developments not keeping pace with demand. Currently, San Diegans can expect to pay an average of $1,743 per month to lease a one bedroom apartment. This is 33 percent higher than rates in 2010.

"We're not even keeping up with birth rates," said Alan Pentico, executive director of the San Diego County Apartment Association. "We don't have enough housing for half the population in California. That's a pretty bad situation."

The seemingly continual increase could spark a renewed interest in homeownership for San Diego residents as monthly rent nears average mortgage costs in some areas and interest rates hover near record lows.

Today, conforming no-point 30-year fixed rates averaging 3.375 percent while the 15-year rate is near 2.75 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.