Renting an apartment in San Diego is about to get a lot more expensive, with a forecast by the University of Southern California predicting sharp increases in rental rates across Southern California.
The annual Casden Real Estate Economics Forecast predicts that by the end of the third quarter of 2023, average monthly rents will increase by $348 in San Diego County, $410 in Orange County, $241 in the Inland Empire, $252 in Los Angeles County and $310 in Ventura County.
The study suggests there will be modest rent increases in urban areas, while suburban rents will continue to increase at a high rate as vacancies remain scarce in the wake of the pandemic.
“COVID-19 caused a large-scale move from central cities to the suburbs that resulted in a sharp rise in apartment vacancies,” said Richard Green, director of the Lusk Center for Real Estate. “The question now becomes whether this historic move from the cities to the outskirts will remain permanent or return to pre-pandemic levels.”
The annual forecast provided the following outlook for each region:
San Diego County
- 2021 Levels: $2,144 average rent; 2.5 percent vacancy rate
- 2023 Forecast: $2,492 average rent; 3.4 percent vacancy rate
Orange County
- 2021 Levels: $2,439 average rent; 2.1 percent vacancy rate
- 2023 Forecast: $2,849 average rent; 3.7 percent vacancy rate
Inland Empire
- 2021 Levels: $1,827 average rent; 1.9 percent vacancy rate
- 2023 Forecast: $2,068 average rent; 1.9 percent vacancy rate
Los Angeles County
- 2021 Levels: $2,073 average rent; 3.9 percent vacancy rate
- 2023 Forecast: $2,325 average rent; 3.9 percent vacancy rate
Ventura County
- 2021 Levels: $2,365 average rent; 2.7 percent vacancy rate
- 2023 Forecast: $2,681 average rent; 4 percent vacancy rate
Green said new construction delayed by the pandemic will soon add inventory in all five regions, so vacancy rates are expected to rise in Orange, San Diego and Ventura counties while remaining near the current levels in Los Angeles County and the Inland Empire.
