Let’s be real – we don’t need any studies or articles to tell us the obvious: San Diego is expensive. Locals are used to handing over a massive chunk of their paychecks to enjoy the sunshine, tacos, and beaches. But for the first time in a long time, there’s some good news on this front: our local rental market is actually cooling down.
Rents in San Diego are going down
According to recent data from Zumper’s National Rent Report, San Diego has officially fallen out of the top 10 most expensive rental markets in the country. We are now sitting just outside that notoriously pricey tier: on the 12th place nationally.
So, what do the actual numbers look like right now? The median price for a one-bedroom apartment is around $2,200, while a two-bedroom place will run you roughly $2,950. While those figures are still really high, they represent a significant step in the right direction. Over the past year, the cost of a one-bedroom rental has decreased by more than 5%. This is a much-needed financial relief to local tenants.
So, what about the rest of California? San Francisco continues to lead the nation in annual rent growth with one and two-bedrooms up 19.9% and 22.8%. On the other hand, Los Angeles also fell out of the top 10 markets for the first time, grabbing the 11th spot.
Why are prices going down?
As usual, it basically comes down to supply and demand. Over the last couple of years, a massive wave of newly constructed apartment buildings has hit the local market. With more units available, renters finally have choices. Because of this increased competition, landlords can no longer hike up prices without risking their properties sitting empty. Woohoo!
To be clear – living in San Diego is still a premium experience, and probably will be for the foreseeable future. However, this downward shift is a welcome change of pace…cause we need more money for tacos and cocktails on rooftops.
