In a recent study, Ocean Beach and Point Loma join other communities around the County that are forecast to have the highest rental increases over the next year. The Peninsula also has a 2% vacancy rate, the study showed.
El Cajon, Santee, and Lakeside join the Peninsula neighborhoods that are named by the Casden forecast for the County to have rental increases the most at a 2.9 percent rental increase from this year to next.
The USC Lusk Center for Real Estate just released its Casden Real Estate Economics forecast for multifamily units, and reported that for larger complexes of 15 to 20 units, San Diego’s vacancy rate had fallen overall to “an almost absurd 2.3 percent” in the second quarter.
The study looked at 15 submarkets and analyzed that rents had increased in all of them, with the highest occurring in the Mira Mesa-Rancho Bernardo area – a 3.5 percent rise to $1,637, while the community between Hillcrest and Normal Heights had the least rent increase, up 1.8 percent to $1,081.
It also found that vacancy rates went from 12.7 % in the area between Clairemont and Mission Valley to 0.9 percent in the Mission Beach-Pacific Beach area.
In the Point Loma and OB areas, there are 3,637 apartments. There is currently a 2.00% vacancy rate, and a 2.70% change over the last year – with a rental rate of $1375. For comparison, there are nearly 1600 units in the Mission Beach and PB areas, there is a .9% vacancy rate and a rental rate of $1600.
Interestingly, the area up in Carlsbad and Del Mar has 11,591 units, a vacancy rate of 6.4%, a rental rate of $1604. Overall, the County has nearly 182,000 units, a vacancy rate of 2.3% and a rental rate of $1388.
For more, go to U-T San Diego.
{ 9 comments… read them below or add one }
Rents over the last year in OB have skyrocketed. My landlord raised my rent by $200, way over the normal 10% increase that is common.
One house across the street from me, a small 2 bdrm with a garage, was renting for $2375, which seemed disproportionately high to others in the neighborhood. Two days after that sign going up, my rent was raised.
I just saw a very small 2 bdrm house on the corner of Bacon and Saratoga renting for $2200 last week, and this week it was lowered to $2100.
I have couple of friends who rented two, 2 bdrm homes about a year and a half ago, both within a block or two of the beach, both for only $1350. I’m guessing those places would both be around $1600-1800 today.
Even Sunset Property Management here in OB said to me at the beginning of this year, that they couldn’t believe how the rents have gone up here in the last year or so.
What the hell is going on?? I’ve always said, OB is one of the last affordable beach communities to rent in here in So Cal. Not anymore.
I believe it is written in blood somewhere in the landlord code, “Renters are for paying your mortgage.” Never mind wages have been stagnant for decades, landlords just pass their costs on to renters, like the moon revolves around the Earth.
“And the legend of the rent was waaaaaaay haaaaardcooooooore!”
It’s called supply and demand. The regional population (aka demand) is exploding. Barring an increase in housing supply (aka density), which most everyone in OB would fight tooth and nail, or mandated beachfront affordable housing (aka lol) that most residents wouldn’t even qualify for, the best way to mitigate this is to help build and preserve small-scale units such as those in the recent article on this blog about flipping homes, and maybe not throw all the homeless people and RVs out.
“It’s called supply and demand. ”
No it’s not. It’s a rigged game with where wealthy speculators have more than a clear advantage just as they do in everything else in this country. During this “recession” since 2006, the wealthiest 1% has gained enormously as the middle class has melded inwith the poorest 99%.
See Robert Reich’s new film for more specifics : https://www.youtube.com/watch?v=YCbAyk8aRxI
Living at or by the beach anywhere is never “affordable”.
obecean, I share many of your complaints, but what exactly are you suggesting as solutions, specifically within the confines of 92107 or the City of SD?
I guess there’s always IB, but then it will only follow OB’s example.
When a landlord cannot get anyone to rent their property, the rent will decrease. As long as people will pay, why would they stop raising the rent?
It’s like $4 drinks at the theater and professional sports tickets. So, don’t buy them.
It is wonderful and mysterious to me how OB can be filled with so many great “down-home” normal-type folks in spite of the high rents.