From the desk of JR...
I hope everyone is enjoying the summer weather and time off (if you have it). Things are in full swing here at Red House and in the housing industry. This RHR is packed with our mid-year rental market recap, info on legal issues that directly affect investment property owners, and ways to support those acting on your behalf.
Overall the San Diego rental market is solid with strong demand, low vacancy rates, and tight supply which has been good for lease renewals but also highlights the need for more housing. The spring vacancy survey was done by SDCAA show’s countywide vacancy rates around 3.4%, the city of San Diego at 2.9%, and north county declining to 3.2% from 5.1% in the fall of 2017.
Below are the average rental rates for properties in the areas we service. The rental rates are based on the past 12 month’s activity and the information was pulled from the San Diego MLS.
Looking back over the last 12 months a few things stand out...
- Supply - Some market areas have seen a pick up in rental supply and I believe this trend will continue. The biggest jumps in supply were in Carmel Valley (92130) and Downtown (92101).
- Solutions - Price rentals correctly & present a clean property in great condition. It’s OK if the property is a little dated as long as everything functions as it should.
- Popcorn Ceilings - The trend to REMOVE continues based on tenant feedback.
- Appliances - Part of the solution - The newer the better.