Increases in mortgage interest rates are pushing more people into the rental market in San Diego, according to commercial real estate brokerage firm Marcus & Millichap.
The Los Angeles Times reports that the firm’s fourth quarter analysis found that the gap between between average monthly mortgage payments and average rent has grown to $1,724, making renting the only option for many residents. This is a roughly $500 increase over last year.
Marcus & Millichap also predicted that rent would increase 7.8 percent by the end of 2018 over a year prior, due in part to an increase in demand and a large amount of new and expensive multi-family buildings becoming available. But inaccessible mortgage rates will likely keep many San Diegans renting for longer.
While it might seem like the county is getting over-saturated with new apartments, there still isn’t a lot available for those searching. The vacancy rate is below 3 percent in more than half of the metro’s submarkets, Marcus & Millichap said. The Santee-El Cajon- Lakeside market has the lowest vacancy, 2.2 percent, the firm said.
