Rental Market in San Diego County
August 26, 2015
It’s hard to believe we are already in the second half of 2015! Over the course of this year, North County Property Group has been watching the rental market closely so we can make the best recommendation on rent rates. The housing market in general is on the rise in San Diego County. This has resulted in low “for sale” inventory which has in turn kept the rental market alive and healthy as well. Of course, we are all concerned about the recent slide on Wall Street and the global impact of China’s weakening economy. While it is yet to be seen how this may affect real estate markets we have noticed a slight slowing of demand during August due to typical seasonal fluctuation.
At North County Property Group, a property management company, we consider many factors when establishing rent rates. The time of year the home is on the market for rent plays a big role in the rent rate obtained for both long-term and vacation rentals as seasonal periods can cause a fluctuation of supply and demand. Specific location and proximity to the coast also plays a big factor in rent rates in San Diego County. In general, homes West of Interstate 5 command a higher demand and rent rate than homes East of Interstate 5. Certain communities like La Jolla and Del Mar may command higher rent rates than other coastal cities. Recent rental comparatives are also reviewed (active and rented homes) in determining rental rates. We track all of these factors in an effort to stay current on rates for our properties in the North County coastal areas of San Diego.
While it is difficult to generalize across the entire county, the popular rental website Zillow.com has the current San Diego long term rent rates at a median of $2,354/month. This compares to the US median of $1,367/month. Last year, San Diego’s median was $2,235 so this year represents a 5.3% increase in rents year over year. A parallel statistic is that long term rental vacancy rates in San Diego County are at a low 2.9%, which is down from 5.5% from 2013.
Another current reason that the rental market is hot is that the job market is alive and well in San Diego County. North County Property Group focuses on the “high end” of the single family home market. Many of our tenants are senior level employees of companies hiring in San Diego who want to test out a neighborhood and understand the local market before committing to a home purchase.
The trends referenced for long term rentals all play true with vacation rentals as well. One big difference is that vacation rentals show more seasonal fluctuation as demand typically increases dramatically during the Summer and holiday seasons. These trends are great news for owners of rental property but don’t rush to a conclusion that you should immediately raise the rent! Pricing a home with the proper rent rate is one of the largest factors in vacancy periods on rental homes. Overpriced homes may sit on the market longer and can “go stale” when on the MLS for a long period of time. So far in 2015, our long-term rental properties have seen short vacancy periods with homes typically leasing to new tenants within 4-8 weeks after being listed. This means the income is consistent for owners and vacancy gaps are minimal.
The collaboration between North County Property Group and our owners to set rent rates, maintain the upkeep on the home, and offer attractive amenities has also helped keep vacancies low. All of these working aspects have kept our reputation strong and further helps attract and keep good tenants. We do our best to stay current rental trends to make sure we are setting their owners up for success! Please contact us if you have any further questions regarding the current rental market in San Diego County or if you would like to have a better understanding of the current market comps for your property!
Located in Del Mar (Carmel Valley), California, North County Property Group provides real estate sales & leasing, property management, and vacation rental services in the various communities throughout the greater North County San Diego area (click here to see communities served).
For more information about North County Property Group, visit http://www.ncpropertygroup.com, or contact the company at 12526 High Bluff Drive, Suite 145, San Diego, CA 92130, USA; Tel: 858.792.5797; Fax: 858.777.5451; E-mail: info(at)ncpropertygroup(dot)com to learn how we’re redefining Del Mar real estate sales and leasing, property management, and vacation rentals in North County San Diego.