Image Source: USC Casden Multifamily Forecast via LA Times
Sky-high San Diego rents along with rents in other areas of Southern California are only expected to continue to rise in the coming years as new-construction levels struggle to keep up with demand—says the USC Casden Multifamily Forecast.
The average rent in Los Angeles County is expected to be as high as $1,416 by 2018—an 8.3% increase from last year. Average rents in Orange County are expected to be as high as $1,736 in 2018, a 9.4% increase.
These continuously rising rents come despite permits for constructing more than 38,000 multifamily units being issued last year across Orange, San Bernardino, Los Angeles, Riverside and San Diego counties — the most since prior to the recession, as per the forecast, completed by Beacon Economics and USC’s Lusk Center for Real Estate.
Explore homes for sale on the San Diego County MLS:
Average rents in San Diego County should increase to $1,577 in 2018, up a whopping 10.9% from last year! Riverside and San Bernardino counties average rents are expected to rise by 7.3% — up to $1,239 a month.
Related Tool: Rent or own— Where can you afford to live?
This should not come as a surprise, considering our rental market index is determined by supply and demand: low supply with high demand equals higher prices. Once new construction picks back up and more “affordable” housing is made available to the public by capitalist investors/developers, supply will increase and will provide relief in rising rents, at least to a more sustainable level.
This study only seems to supports the data that buying a home and locking in the currently low fixed interest rates may provide more stability and predictability for current tenants than continuing to gamble on increasing rents.
Related: To get started with buying a home, see this article: How to Buy a House | The Ultimate Guide [2016 Edition].