San Diego will likely see rent hikes in next two years, USC study finds

SAN DIEGO (CNS) – Renting an condo in San Diego county will likely be getting dearer, with a USC Casden Economics Forecast launched Thursday predicting persevering with lease will increase over the subsequent two years.

San Diego is projected to have a lease improve of $250 by October 2024, outpacing Los Angeles and Orange counties, that are estimated to extend by $100 and $184, respectively.

Based on the forecast, San Diego County has a present common lease of $2,334, with a 2.9% emptiness price, with the common lease predicted to rise to $2,582 by 2024, with a 3.44% emptiness price.

The annual report from USC Lusk Middle for Actual Property assesses present market situations and makes two-year projections for multifamily rents and vacancies in Southern California.

Richard Inexperienced, director of the Lusk Middle, famous that the forecast was considerably unsure resulting from fluctuations in inflation, rising rates of interest and relocations.

“The Fed has elevated rates of interest at a frequency not seen for the reason that finish of the Reagan administration,” Inexperienced mentioned in a press release.

“Whereas it would sluggish inflation, fast price hikes may have a distinct influence on housing in Southern California. Excessive curiosity will be barrier to new housing development or a renter’s determination to develop into a house owner. Each add stress to the rental market and drive up costs.”

The report famous San Diego is dealing with a paradox of great outmigration from the area and but a shrinking emptiness price.

“With low unemployment (3.2%) and incomes above the nationwide common, most outmigration is amongst these with decrease incomes,” it reads. “The forecast means that these vacancies have been absorbed by households proudly owning a couple of residence. Regardless, the forecast predicts will increase in each lease and vacancies over the subsequent two years.”

Whereas the county outperforms each Los Angeles and Orange counties by way of constructing housing, it stays close to the underside of the nation in new housing inventory.