Holy Crap asking rents have risen

[The-Shoveler]

Even with all the housing (apartments) being added it is still far below long term average.

What we need is MORE homes being built (per year) than what were being built during the 80’s when the boomers were coming of age. There are more Millennials coming of age than there were Boomers in the 80’s.

No one seems to take that into account, like were all going to fit into the existing housing or something.

[FlyerInHi]

I agree shoveler. Buy now or forever be priced out, haha

One day as a region we will hit a crisis/shortage situation. High paying jobs can’t support increasing prices forever. We need to add to supply to sustain the standard of living of people living here.

Eventually cost of living will start affecting other sectors of the economy.

[Coronita]

[quote=ltsdd]…I am still debating whether to raise rents on my MM rentals. I have kept the rent the same for the last 5 years. I think the tenants know that they got a bargain. $1900 for a 4/2.[/quote]

Yup.

[Coronita]

Well the other thing is that I think I’ve been seeing more activity from more of the youngsters that are now moving out of their parent’s home, now that more of them have a real job.

[mixxalot]

Rents indeed are a lot higher in San Diego. However, I paid 1200 a month seven years ago and now have a nicer 1 bedroom for 1350 so compared to the bay area rents are not as bad. When I lived in Silicon Valley area of Mountain View I was paying 2100 for a 1 bedroom.

Buying a home would cost me 3k a month for a mortgage and I’d also have to drop 50-200k for a down payment. Granted I would have a 3-4 bedroom place with a yard and garage in Santee but still a lot more expensive if I ever lost a job and had to move for work.

[utcsox]

http://files.zillowstatic.com/research/public/rental/ZRI.San%20Diego.395056.pdf

According to Zillow Research, the rent in San Marco has only gone up by 2.8% for the past year. This is lower than the San Diego region which went up by 4.1%.

Zillow is predicting the rent hike will slow to
1.4% this year.

http://www.sandiegouniontribune.com/news/2016/jan/22/zillow-rent-prediction-2016/

[Escoguy]

Just more info:

http://catcher.sandiego.edu/items/business/Miller%20Presentation%20to%20Housing%20Outlook.pdf

3.7% Average Forecasted Rent Growth 2017 – 2019

1) The London Group report suggests a shortage in housing units of 50,000 to 118,000.

2) SANDAG estimated that San Diego will need to produce 161,980 more units of housing from 2010 -2020. After 36 percent of time elapsed, San Diego produced:
• 31 percent of the high-income units needed,
• four percent of the moderate-income units needed and
• six percent of the low-income units needed

3) This is not surprising since the easiest housing to get approved is low density and more expensive than the neighbors.

http://dtz.cassidyturley.com/DesktopModules/CassidyTurley/Download/Download.ashx?contentId=4388&fileName=2015DTZ_FORECAST-FINAL.pdf

San Diego’s economy grew 1.8% in 2014 – above the 10-year average growth of 1.4% – and is forecasted to grow at substantially higher rates of 2.9% in 2015 and 2.4% in 2016.

With regards to employment, from April 2014 to April 2015 San Diego added a total of 40,900 jobs, an annual growth of 3.1%. That qualifies as the strongest year of job creation in the recovery and the highest in 15 years. San Diego’s employment is forecasted to grow 2.5% in 2015 (+33,120 jobs) and 2.5% in 2016 (+34,680 jobs). This is an attractive pace by historical standards as our average job growth over the last 20 years has been 1.7%.

[mixxalot]

So that would explain the way worse traffic 24x7x365 and higher rents? I don’t remember the streets and freeways around OB/Point Loma/Mission Valley and the 5 being always full of traffic and even 163/15 all the time a few years ago.

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