Tighter housing market for renters

Apartment vacancies tighten up
Average rent rises $1 over last year
By Roger Showley, UNION-TRIBUNE STAFF WRITER

Friday, December 4, 2009 at midnight

San Diego — San Diego landlords had it slightly better, and renters slightly worse, as vacancy rates dipped to 5 percent at local apartment complexes, the San Diego County Apartment Association will report today.

In its fall vacancy and rental rate survey of 38,207 apartments in 1,268 complexes and single-family rented homes, the association said vacancy was down from 5.4 percent last spring but up from 3.6 percent a year ago.

The weighted average rent countywide was $1,189, compared with $1,192 last spring and $1,188 a year ago.

Robert Pinnegar, the association’s executive director, said in a statement that vacancy was down because of higher renter demand and few if any new apartment complexes.

Apartment complex sales have begun to increase, he said, indicating an improvement in the investment market. “But we’re not out of the woods yet,” he said.

A 5 percent vacancy level generally indicates a balance between supply and demand. Ten years ago the vacancy rate was at 2 percent and widespread rent increases were common.

NORTH COUNTY COMMENT:
Interest rates are between 4 1/2% & 5% and the rental market appears to be tightening up. Make from it what you will but this sure looks like we're heading for a short supply of housing in San Diego County. The law of supply and demand, great prices and low interest rates might just make this the best time to buy in years!

Contact me if you need me... SDRealtor@cox.net