San Diego is the fastest-growing city in California, with families pouring into the county looking to stake their claim with a rental property. The population of the area continues to grow even as the cost of rental housing steadily climbs, increasing by a whopping 20 percent between 2017 and 2018, according to a survey by MarketPointe Realty Advisors. The rising cost of monthly rental prices combined with more families flocking to San Diego has investors licking their chops to find a real estate agent who specializes in finding an affordable and desirable rental property.
San Diego Rental Income for All Ages
San Diego was recently ranked the fifth best rental market in the nation by Business Insider, and landlords of all ages are looking to capitalize. While retirees flock to San Diego for its temperate climate, today even seniors are purchasing rental properties to capitalize on the rental boon. And there is no sign of slowdown as families with monetary means who are fed up with cold winters seek San Diego as a logical landing spot.
Recent Rental Trends in Southern California
Perhaps the biggest sector of newcomers arriving to the area and looking to rent are families that fit a younger, more affluent demographic, due in part to increasing job opportunities. Since first-time buyers often can’t afford to purchase houses in the most desirable locations near beaches or trendy urban areas, families are looking to rent in these areas to acclimatize and embrace the best that San Diego has to offer. Savvy landlords, meanwhile, realize those impulses come with a higher price.
Family Fixations in A Rental Property
Families migrating to this area are looking for the biggest bang for their buck, which comes back to the old real estate adage: “location, location, location”. For young families moving to the area, finding a place in close proximity to schools and outdoor activities like parks or beaches is vital. When moving here for a job, working families often seek a convenient public transportation hub near their rental abode to ease the burden of a daily commute.
Vacation Rentals on The Rise
With its pristine coastline and access to family attractions like Sea World and Disneyland just a short drive up the coast, San Diego has also become a haven for short-term, family vacation rentals.
2018, over one million guests stayed in Airbnb rentals throughout San Diego County, which translated into more than $200 million that hosts received for rented dwellings. Smart investors are capitalizing on this trend by purchasing properties in more upscale neighborhoods like the prestigious Black Mountain Ranch, Carmel Mountain, and Miramar Ranch North areas, each recently named the best-performing rental communities in San Diego.
The new wave of families looking to rent in San Diego, for both long and short term, are proving a lucrative real estate investment for prospective landlords. Rental inventory demand now outweighs the supply, and many desperate renters are willing to increase their budget to live in a desirable location. As prices continue to rise, now is the time for families to make the move and test the warm San Diego rental waters before they become even hotter.