San Diego rents haven’t been this flat in decades.
The average San Diego County rent was $2,491 a month at the start of September, said real estate tracker CoStar, a growth of 0.5 percent annually. It wasn’t that long ago — in 2022 —when rents rose 13 percent in a year.
Not everyone is sharing in the rent slowdown, especially in outlying San Diego County. The rural areas of Poway, Santee and Ramona have seen their combined rent increase 2.6 percent. Also, just because rent is down in one area, doesn’t mean an individual landlord didn’t decide to finally raise rent after sitting out the big surge a couple of years ago.
Still, it is hard to argue there isn’t a slowdown in residential rent prices when you look at the region as a whole. The countywide vacancy rate is 5.2 percent, said CoStar, which is the highest its been since the first quarter of 2020 when the pandemic hit.
Lucinda Lilley, an apartment specialist who consults for three property management firms in San Diego County, said renters are finding it difficult to afford rents, instead deciding to leave the state or move in with roommates. She said many landlords are increasing concessions, such as one month free rent, to entice tenants.
“We’re becoming a concession-driven market,” Lilley said. “People are willing to sacrifice location and amenities for price.”
Lilley is the former president of the Southern California Rental Housing Association, and groups she consults for manage roughly 3,500 to 4,000 units across San Diego County. She said some renters’ wages haven’t kept up with cost of living, and landlords are increasingly coming to that realization.
Joshua Ohl, CoStar director of market analytics, said rent growth has slowed but it’s on the back of gigantic increases during the tail end of the pandemic.
“In 2022, we basically had three years of rent growth in 12 months,” he said. “Rents went up really, really quickly.”
Some experts also have pointed to rent growth slowing in some markets because of increased apartment construction. Apartment construction in the U.S. hit a 36-year high in 2023, said an analysis from RealPage, with 444,000 apartments constructed last year.
Still, most local landlords insist the issue has more to do with economics. While San Diego County wages rose mainly across the board last year, it’s not kept up with inflation for many workers. Rent has become an issue in the U.S. presidential campaign with Vice President Kamala Harris saying she would “take on corporate landlords and cap unfair rent increases.”
Even though average rental rates have declined, rent prices for current tenants have not dropped. It is fairly rare for rents to go down. The last time the rent average dropped in San Diego County was during the Great Recession — a 2.1 percent drop in 2009.
Several organizations have offered up guides over the past few months with ways consumers can ask for a rent reduction. One from Realtor.com recommends presenting landlords with rental statistics when making a request for lower rent. It also suggests offering up a realistic rent reduction, not starting with a crazy lowball.
The guide says to frame a suggestion in a nonconfrontational way like: “I love this place and am looking for a long-term commitment. Unfortunately, my personal finance budget is (fill in the blank). Would you be willing to meet that in exchange for signing a longer lease?”
Here’s how rent breaks down by area, and concessions in those markets. Concessions are often found at the newest apartment buildings, which are the most expensive. Concessions are based on information from the apartments’ websites and subject to change:
North Shore Cities (Del Mar, Encinitas, Solana Beach)
Average monthly rent: $3,537, up 1 percent in a year
Vacancy rate: 5 percent
Concessions: The Sola at Pacific Highlands Ranch, a 252-unit complex that opened in 2018, is offering up to one month free on some units. The average rent is $3,305 a month for a one-bedroom, said CoStar, and $4,452 for a two-bedroom.
La Jolla/UTC
Average monthly rent: $3,320, up 1.2 percent in a year
Vacancy rate: 5.2 percent
Concessions: The Lux UTC complex, which was completed in 2022, is offering up to two months off on select units. It has one of the highest average rents, $5,147, in San Diego County.
Downtown San Diego
Average monthly rent: $3,076, down 1.3 percent in a year
Vacancy rate: 11.2 percent
Concessions: San Diego County’s largest new apartment building, the 431-unit West on Union Street, is offering up to two months off on some units. The average rent at West is $4,803 a month.
South I-15 Corridor (Sorrento Valley, Miramar, Mira Mesa)
Average monthly rent: $3,017, down 0.1 percent annually
Vacancy rate: 4.3 percent
Concessions: None found in this market.
Mission Valley/North Central (Clairemont, Kearny Mesa, Allied Gardens)
Average monthly rent: $2,845, flat year-over-year
Vacancy rate: 4.9 percent
Concessions: The Ruby building, part of The Society complex, is offering up to two months free on some units. The Society was built on a 10-acre site by the Town & Country Resort. Average rent at Ruby is $3,896 a month.
North County (Oceanside, Carlsbad, Vista)
Average monthly rent: $2,495, up 0.7 percent annually
Vacancy rate: 5.1 percent
Concessions: Oceanside’s newest apartment building, the 309-unit Alta O’side, is offering up to six weeks free. Average rent at the complex is $3,902 a month.
Chula Vista/Imperial Beach
Average monthly rent: $2,383, up 0.2 percent in a year
Vacancy rate: 5.6 percent
Concessions: The Enclave Heritage apartment complex, with 932 units in Otay Ranch, is offering five weeks free if you sign a lease by Sept. 30. Average rent at the complex is $3,233 a month.
Central Coast (Pacific Beach, Mission Beach, Ocean Beach, Point Loma, Coronado)
Average monthly rent: $2,376, down 0.7 percent annually
Vacancy rate: 5.9 percent
Concessions: The new Bevel Apartments complex near Liberty Station is offering up to a month free on select units. The 405-unit complex has an average rent of $3,101 a month.
Poway/Santee/Ramona
Average monthly rent: $2,236, up 2.6 percent in a year
Vacancy rate: 8.8 percent
Concessions: Poway’s newest apartment complex, the 212-unit West Village Poway, is offering up to six weeks free on select apartments. Average rent at the complex is $3,416 a month.
Outlying San Diego County (Julian, Campo, Jacumba Hot Springs, Alpine)
Average monthly rent: $2,013, down 1.3 percent in a year
Vacancy rate: 6 percent
Concessions: The Alpine Woods apartments in Alpine is offering up to two months free on select apartments. Average rent at the 116-unit complex is $2,688 a month.
Balboa Park (North Park, University Heights, Hillcrest, South Park)
Average monthly rent: $1,972, up 0.5 percent in a year
Vacancy rate: 4.9 percent
Concessions: The Casa Verde apartment complex in North Park, which opened one year ago, is offering one month free and a $1,000 credit if you apply onsite after a showing. The average rent is $2,716 a month.
East County (La Mesa, El Cajon, Grossmont, Rolando Village, Talmadge, College Area)
Average monthly rent: $1,957, up 1.2 percent in a year
Vacancy rate: 4.2 percent
Concessions: Newly opened The Flats complex in La Mesa is offering one month free on select units. The 42-unit complex has an average rent of $2,100 a month.
National City/South Central
Average monthly rent: $1,912, up 2.1 percent annually
Vacancy rate: 3.7 percent
Concessions: National City’s The Commodore is offering one month free spread out over 12 months on select units. The 92-unit complex opened in February.