Southern California Apartments will Continue to Rise in Price

According to a University of Southern California Lusk Center for Real Estate study released September 24th, the price of apartments in Southern California will increase for the next two years.

Almost 6,700 units were created between the second quarter of 2012, while 2013’s numbers for the second quarter are at a three-year high. The market absorbed virtually 11,900 units according to the foresaid source.

“The demand is being driven by deteriorating home affordability,” said Richard Green to Patch.com. Green is the co-author of the study and the director of the USC Lusk Center.

Green’s studies showed that there were noticeable enhancements in the economy, but the quick rise in prices are due to expensive San Diego real estate and interest rates. This is forcing first-time homebuyers out of the San Diego real estate and into renting apartments. There will be lesser vacancies of apartments and higher rent prices due to the force out according to a statement Green said to Patch.com

According to USC’s study, San Diego apartments had the lowest vacancy rate in Southern California 2013’s second quarter. The percentage of renter’s vacating to move to San Diego real estate or another residency is at 2.3 percent down 37.1 percent from the numbers in 2012.

The rent for San Diego County escalated up to 2.75 percent to a pricey $1,388 monthly rate according to the study.

Green predicted in an interview with Patch.com that the growth rate for rents will be slightly higher in San Diego. He also said to Patch that vacancy rates will decrease in Southern California at a slightly slower rate in San Diego.

However according to a report in Data quick, the market could see the first-time homebuyers return to buying San Diego real estate. The median price in San Diego real estate is down over $2,000 from July to August at $417,500 to $415,000.

By Linda Moore

Office Listings

Listing information deemed reliable but not guaranteed. Read full disclaimer.
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