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Wondering how to find out rental demand in an area?
Organizations like the California Rental Housing Association (SCRHA) are a great place to start. The SCRA publishes an annual report on vacancy and rental rates, which can indicate supply and demand.
Learn the real estate trends in San Diego from this year's report in this guide.
Rental Rates Are Dropping
Learning how to find out rental demand in an area begins with analyzing rental rates.
After years of fierce competition, the San Diego market is swinging in renters' favor. The average monthly rent in San Diego has declined by 3 percent since last year.
County rental rates have dropped even more, falling 7 percent year-over-year, or from $2,338 to $2,170. Though these declines may seem modest, they can add up to thousands of dollars of savings in annual rent.
New Properties Are Coming to Market
A RentCafe report suggests that the local San Diego real estate market is less competitive this year compared to 2023. Rental units are sitting on the market for ten days longer, and the surge of new housing may be to blame.
0.2% of the area's housing supply consisted of new builds last year, and many of these units have recently come onto the market. However, new builds made up a relatively smaller percentage of units this year.
A key takeaway is that the rate of new properties coming to market is on the decline, signaling that supply and demand may even out in the coming months.
Vacancy Rates Are on the Rise
With so many new properties becoming available this year, it's only natural that vacancy rates are rising. The San Diego Union-Tribune reports that San Diego has seen an increase in vacancy rates of more than 1.5 percent year-over-year.
At the same time, vacancy rates in San Diego County are even higher, rising from 3.9 percent to nearly 6.4 percent from 2023 to 2024.
A key takeaway is that investors should be wary of investing in properties outside the city. Units within the city limits will face relatively lower competition in the coming months.
Older Units Are Falling Out of Demand
Another reason experts believe the local vacancy rate is higher right now is the demand for older rental communities. According to rental demand research, older properties in San Diego are seeing higher than usual vacancies.
These vacancies may be spiking as tenants relocate to the newer properties coming onto the market, many of which are currently priced competitively.
The key takeaway from this San Diego rental market trend is to bet your money on newer units. Older units may continue to be out of favor until rental rates start climbing again.
This Is How to Find Out Rental Demand in an Area
Rental and vacancy rates are two of the best indicators for figuring out how much rental demand is in an area. We discovered these 2024 findings via the Southern California Rental Housing Association's Annual Vacancy and Rental Rate Survey.
Need more help learning how to find out rental demand in an area? Harland Property Management has the tools and expertise to help you set the right price for your property, calculate vacancy loss, and so much more.
Contact Harland Property Management today to find out why we've been a top choice in San Diego for over 18 years.
