San Diego showed the fifth-fastest rental-growth increases year-over-year among large cities. | Courtesy RENTCafé and Yardi

San Diego Is in the Top 5 for Rent Growth

Carrie Rossenfeld Multifamily

San Diego ranks fifth in year-over-year apartment rent growth among large cities, according to a report from RENTCafé, a nationwide apartment-search website that is part of Yardi. San Diego saw 4.6 percent rent growth from a year ago, nearly twice the national average of 2.4 percent.

While the April report did not reveal the average rental amount for an apartment in San Diego and RENTCafé did not return SoCal Real Estate’s request for that information before deadline, the firm’s website reveals the average rent for an apartment in San Diego to be $2,028. The site also reveals that studio apartments in San Diego rent for $1,479 a month, while one-bedroom apartments ask on average $1,793 a month; the average rent for a two-bedroom apartment is $2,190.

According to Marcus & Millichap’s Q1 multifamily report for the San Diego metro area, the market saw a 5.2 percent increase in effective rents Y-O-Y. Building on a 5.8 percent increase during the previous 12-month period, the average effective rent climbed to $1,887 per month in December 2017, with rent growth led by affordable submarkets. In Mid-City/National City, a 7.9 percent boost elevated the aver¬age effective rent to $1,537 per month, while Escondido’s average rate climbed 7.0 percent to $1,535 per month.

With a 6 percent increase over the year, Las Vegas rents rose the most among the largest U.S. cities, reaching $979 per month in April, as the local housing market is rebounding, the April report says. Denver remains one of the hottest cities for renters in the U.S., with apartments renting for $1,559 per month, 5.8 percent more expensive than they were one year prior.

Rental housing in Detroit is making a comeback after years in the slump; apartments in Detroit saw the third-highest yearly increase in prices among big cities, 5.4 percent, reaching $1,015 per month, which is still well below the national average.

Also poised for an active rental season is Phoenix, with a 5 percent year-over-year increase in April. Jacksonville, Charlotte, Los Angeles and Houston apartment rents rose by more than 4 percent, while Columbus, Fort Worth, Dallas and Seattle rents were more moderate, between 3 percent and 4 percent.

Rents in Brooklyn and Manhattan apartments continued sliding, by -1 percent and -0.2 percent, with the average price in Manhattan $4,063 per month and in Brooklyn $2,688. Meanwhile, Baltimore apartments stagnated around $1,200 per month, as the market is cooling down. Monthly rents in DC, Portland, Austin, San Francisco, El Paso and Oklahoma City have been steady for the month, growing by less than 1.5 percent.