Rent prices in San Diego will climb at a faster pace than the rest of Southern California over the next two years. This is according to a report released this week by the University of Southern California in conjunction with Los Angeles based Beacon Economics. The study cited a slow-down in new home construction and a growing population as the primary reasons rentals will see increased demand resulting in higher prices.
The climb is expected to be $155 over the next 24 months, higher than Orange, Los Angeles and Riverside Counties. MarketPointe Realty Advisors says that the average cost of rent in San Diego in March was $1,618.
Zillow reports that San Diego lessees pay on average 39.5 percent of their monthly income on rent – comparatively less to other metropolitan markets such as Los Angeles (47.6 percent), San Francisco (46.1 percent) and San Jose (41.2 percent). However, this may shift if costs continue to rise at a faster pace in San Diego.
Today, conforming no-point 30-year fixed mortgage rates average 3.625 percent while the 15-year rate is near 3 percent.
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