S.D. apartment market expected to be SoCal's strongest
San Diego Daily Transcript
By Thor Kamban Biberman
...San Diego is expected to have the strongest apartment market in Southern California for the next two years, but won't be as affordable as the other markets. According to the USC Lusk Center Casden Real Estate Economic forecast, San Diego is projected to have both larger rent increases and lower vacancy levels than Los Angeles County, Orange County and the Inland Empire.
"After a dismal 2008, Southern California's apartment markets showed signs of improvement in 2009," the Casden report stated. "The trend is expected to continue over the next two years. Los Angeles and Orange County will continue to see rent declines at an ever-slower rate, while the Inland Empire and San Diego Counties will see flat-to-increasing rents by 2011."
The Casden report concluded there will be a 0.4 percent decline in San Diego County's apartment vacancy this year to 4.5 percent. A 5 percent average vacancy rate is considered by the industry to be balanced apartment market. Without specifying exact numbers, the Casden forecast said rents in San Diego will increase by a very modest 0.7 percent this year. Still, that is an increase while Casden is forecasting a rent decline in other markets during the year.
"San Diego will continue to outperform the other Southern California markets in rents and vacancy rates, just as it has over the last year," the forecast continued...