In the current Downtown San Diego Real Estate market, a large group of people are choosing to rent instead of buying a home. The Wall Street Journal reports in the article “Rents Increase as Vacancies Dry Up” that competition is raising which forces rent prices to increase.
Currently, vacancy rates are at their lowest levels in more than a decade. Average rent now tops over $1,000 a month. This puts San Diego in line with places such as Miami, Seattle, and Chicago. Vacancy rates themselves fell from 4.9 percent in the first quarter to 4.7 percent; the lowest level since 2001. So far, this is only the third quarter to have a vacancy rate below 5 percent in the past three decades. It is believed that many people are looking to have their own place. Because of more stringent lending standards and questions about job security, many are opting to rent rather than buy home.
As the overall economy recovers, new dynamics for both rental and homeownership will be discovered. If you are considering renting or buying a Downtown San Diego Condo or Downtown San Diego Loft, it is always important to know whether or not prices are shifting in your favor. ')}