September building permits for apartments topped the $100-million mark for the first time, according to the John Burnham & Co. monthly San Diego County apartment report.
Burnham's figures reveal that September new construction permits soared to a record $108,441,776, representing 2,953 units. This was a 90% increase over figures reported a year ago. And for the first nine months of this year, new permit valuations reached $430,106,657 for 12,655 new units, which was also a record high and a gain of 74% over valuations for the same period last year.
"This is great news for renters here," George Carlson, who compiles the survey, said. "First, with more new apartment units being built, it means renters now have a wider selection of available units. And, second, increased competition to attract tenants to both new and existing apartment projects will tend to put a cap on rents." However, he also believes that it will be some time before new apartment construction begins to catch up with demand for rental units due, in part, to the fact that few apartments were built in the late '70s and early '80s.