November is usually when rents fall the fastest, and 2023 is no exception – prices nationwide dropped 1% last month, yet t San Diego is still among the nation’s costliest markets.
That could mean a second consecutive slow winter for the rental market, according to ApartmentList.com, as rents are down $32, or 2.4%, from their mid-year peak in August. In San Diego, that percentage nearly doubles.
Vacancies get harder to fill closer to the holidays, giving renters leverage in lease negotiations. In some regions like Austin, Texas, Atlanta and much of the Bay Area, renters now can find new leases that are in excess of 5% less than in the summer.
San Diego highlights in ApartmentList.com’s December Rent Report include:
- After falling 1.6% in November, rents in San Diego are down 4.2% since their summer peak.
- The median rent in San Diego is $1,927 for a one-bedroom unit and $2,485 for a two-bedroom unit.
- Chula Vista is just behind San Diego at $2,346 for a two bedroom.
- Carlsbad is currently the most expensive in the region, with a median rent of $3,072. La Mesa is the metro’s most affordable city, with a median rent of $2,237.
- If historical seasonal patterns hold, rent growth should heat up once again in early 2024, but a strong supply of new units coming online next year should moderate prices a bit.
San Diego’s rent drop marks a change from last year, when from January to November rents had increased 5.6%.
Yet as far as expensive rent goes, Southern California holds three of the top 5 spots in the U.S., topped by Irvine, at $3,143 a month, followed by Huntington Beach and Santa Clarita.
Two famously expensive cities now trail those communities – with New York City at $2,146 a month and San Francisco, $2,122.
U.S. average rent is $1,340 per month.