The San Diego County apartment market is strong but is becoming increasingly competitive because of new construction, according to the most recent San Diego Apartment Rental Rate & Vacancy Rate Report, published semiannually by Park Weaver Realty of Phoenix.
As of Jan. 1, the average apartment vacancy rate was 3.7%, down from 4.2% six months earlier but up from 2.0% in January, 1985. However, when broken down by age of complex, the highest average vacancy rate, 7.1%, was in apartments built in 1984 or 1985.
The report shows that these newer units are commanding an average of $56 a month more in rent than the older units. The average rental rate for all types of units in San Diego County is $555 a month.
Because of the large amount of permit activity during the last two years, a substantial number of new apartments are expected to come on line during the next year. Although competition for tenants will also be substantial, population increases and employment growth is expected to keep average apartment vacancy rates in the 3% to 4% range this year, with average annual rental increases continuing in the 5% to 6% range.
Copies of the report are available from Park Weaver Realty, 4747 North 7th St., 140, Phoenix 85014, for $150 each.