Do you wonder why the lower-end markets are so hot?
I spoke to a potential buyer yesterday who said he wanted to buy because his rent was so high. He is paying $2,100 per month to rent a 2br apartment in Shadowridge.
He has lived there for less than a year, and the landlord just gave him notice that they are already raising it to $2,400 per month!
Are you kidding? $2,400 per month for a 2br apartment in Vista???
Here are the median monthly house rentals being advertised in the MLS:
Carlsbad: $4,495
Encinitas: $4,500
Carmel Valley: $4,600
Del Mar/SB: $6,400
La Jolla: $8,800
Rancho Santa Fe: $10,250
The landlords will have to endure more turnover, more repairs, and more all-around hassle as they keep pushing rents higher, but they will keep a fire lit under any tenants who can find a way to buy!
These higher rents should keep the lower-end of each market hopping!
When we moved to San Diego in 2013, we rented a 2bd, 2ba apartment in Scripps Ranch. Rent was $2,011 for a 10 month lease.
Towards the end of the 10 month lease, they were going to raise it to $2,100!
So, we decided to look for an actual house to rent and found one in PQ for $2,300 We figured that for the extra $200 we were getting another bedroom, a 2 car garage, a backyard and just additional space.
We’re still there and knock on wood, our rent hasn’t gone up! 🙂
Occasionally I check the rent on our old apt and they’re now going for over $2,300 and at one time was as high as $2,600!
Insane!
But, we’re building up our cash reserves and anticipate shopping for a house next year.
I put out a single ad on craigslist last week for a 2 bdrm Encinitas condo rental turning over next month. About 30 calls in the first couple of days. Rented immediately. It’s tough out there.
Kingside — your rent was obviously too cheap.