Rental price increases in San Diego have been on the rise for the past few years, and it is unlikely that 2016 will see any relief from this trend. San Diegans spent 9.4 billion on rent in 2015 (according to a study published by Zillow) which puts us in 6th place nationally, behind New York, LA, San Francisco, Chicago and D.C. We can attribute lack of housing as a factor in these price increases and developers are responding to this with new apartments and condos. Unfortunately, even with these numerous multi-family housing projects in the works, the demand is still higher than new units available. Not to mention, a number of these projects are built to become condominiums eventually, which leads us to conclude 2016 rental rates will continue to increase.
It’s no surprise that living in San Diego is not cheap – and with rental and home prices rising faster than wages, a lot of people may be struggling with the decision to keep renting or to think about buying. If you aspire to be a homeowner, you may want to do your research this year, because even assuming a 10% down, by owning a home you can evade rent increases, as well as enjoy the benefits of tax breaks!
The president of the San Diego Association of Realtors, Chris Anderson, said that she always recommends millennials buy a home rather than rent because of tax write-offs and other factors.“Even if it is a little more than what they are paying in rent, they are owning the home so they are starting their wealth building,” she said. “They have also secured their cost of shelter. No one can raise the rent on them.” – San Diego Union Tribune
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