I’ve been watching the rental market as much as the sales market for the last 2 years, because I want to move, but don’t want to buy if we’re at the top of the market, but don’t want to rent for just 6 months somewhere only to find I should buy if the market drops enough.

I would say the rentals have been going way up for at least 2 years! I have been amazed at what owners are asking and getting in rents! I have to assume it’s only going to get worse: as more people keep moving here, and as foreclosures go up and people become renters again, it seems like that will just drive up the rental market too. If I’m wrong, someone please let me know.

I rent a 2000sf place (built in 2001) with 2 car garage, fireplace, wood floors, granite countertops, nice appliances, etc… in downtown SD for $2395/mo. The management company tried unsuccessfully to rent it for $2700, $2600, and $2500/mo before I moved in.

Gspan got stock market bubble for us, then housing bubble. Only 15% of the people in southern CA can afford the house now. If rent continues to go up and renters can not afford, where shall people live?
Where is this government leading us to? Ya, Southern has a great climate. We can all camp outside, I guess.

Rents in UTC for apartment communities are being squeezed upward because of the overabundance of condo conversion inventory vs. available apartments. Several major complexes are competing against each other within just a few blocks of each other. I’ve heard that rents in the area have jumped $100 in many places as the management companies have taken advantage of the situation. A friend there has had rent in a less than great complex jump by more than $200/mo!

I checked the rental vacancy rate for SD a few weeks ago and it was nearly 5%. The last big rent jump in the area was about $100 in 1998 when the vacancy rate was under 2%. Go figure.

Condo conversions can last anywhere from 9-24 months, or longer, depending on how fast the paperwork gets approved. On those bigger developments, I’d guess it’s at least 2 years.

Believe it or not, there are a lot of “good tenants” out there who have not become homeowners “by now”. Lest ye not forget–the median household income in San Diego is NOT amongst the highest in the Nation. Additionally, there are an ever growing number of people unwilling to pay what it would take to buy “condos” (apartments really) at current prices. Finally…higher rents are not due to “risk premiums”…rather over-leveraged speculators who are BARELY staying above water to own said “condos” trying to raise rents. Dead ducks they are!! Every single one of them!! Remember—“DENIAL IS NOT JUST A HOUSING BUBBLE IN SAN DIEGO”

Rents are lower now. It seems that anyone with a pulse has qualified to purchase a home, and rentals are staying on the market a long time, driving the prices down.
I am speaking of my experience over the last 45 days looking for a rental home in Poway and Rancho Bernardo.

This week I read a study going back over 30 years in SD, and the rents were usually $1.15/sq ft in North Cty Inland. Currently, these are $1/sq ft, sometimes a little more if the lot is really big or it’s an exclusive neighborhood. Some owners are asking more, but their rentals are still vacant. We will be paying $1/sq ft for a 2000 sq ft nice duplex built in 2003. During my search I witnessed reductions on rental prices, and find that a 2900 sq ft brand new house is still vacant after 105 days on market (MLS listing for rent), despite coming down from $3200/month to $2600/month. We almost took it, but decided to cut our costs a little while renting.
I get a kick out of asking the owners why they are renting and not selling. They are all speculating that prices will go up.