SAN DIEGO – The already high apartment rents in San Diego are expected to continue to climb 10 percent over the next few years, according to a forecast report.
The average monthly rental payment in San Diego County should increase to $1,577 in 2018, up 10.9 percent from 2015, according to the USC Casden Multifamily Forecast. Los Angeles County average rent is expected to grow 8.3% in the same time period to $1,416 a month.
The forecasts, completed by Beacon Economics and USC’s Lusk Center for Real Estate, are based on the amount of new construction compared to population and job growth.
Developers throughout Southern California pulled 38,000 multifamily units – the most since before the recession, according to the forecast.
“But much of the new supply is on the pricey end, and economists say much more construction is needed because California has consistently built too few units relative to population growth,” Los Angeles Times reported.