Renters in San Diego are paying more than ever to lease a home, according to a new report. San Diego County’s average rent climbed to $1,960 per month in September, the highest average ever recorded. This data, which was compiled by MarketPointe Realty Advisors, shows that driving up the average are the nine new apartment complexes that opened this year with comparably high lease prices.
San Diego has grown to be notorious for its high cost of living, particularly for renters. Average monthly rent has grown at twice the rate of inflation in recent years which has brought it up to become the tenth most expensive rental market in the nation. More expensive markets include San Francisco ($3,650 monthly), New York City ($2,850 monthly) and San Jose ($2,470 monthly).
Still, experts are forecasting that rent prices may stabilize as the overall housing market cools. Already, year-over-year increases have slowed. September’s annual jump in rental prices was 5.74 percent, compared to 6.36 percent in 2017.
More expensive leases could give renters an incentive to become homeowners instead. Today, conforming no-point 30-year fixed mortgage rates are averaging 4.75 percent, 15-year rates are near 4.25 percent and the 5-year ARM is averaging 4.25 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.