Zumper issued its winter 2015-2016 report on San Diego rental rates for 1-bedroom units. Zumper is a tech startup striving to make the process to searching and contractually committing to a residential rental property more efficient. The infographic below shows affordable and expensive 1-bedroom rentals by neighborhood based on the median rent.
In December 2015, San Diego remained the 11th most expensive rental market in the nation, despite seeing rents across the city drop slightly. One bedrooms decreased 2.2% to a median of $1,500, while two bedrooms decreased 3.3% to a median of $2,030.
If you’re curious about how San Diego – or other U.S. cities – stacks up with the rest of the United States, view Zumper’s January National Rent Report, which analyzes over 1 million active listings available in the prior month. San Diego rental rates are constantly changing, so leverage Zumper’s data to track the changes.
Real Estate Developers and Investors
Tracking the rental market is key for real estate developers looking balance the cost of building with the potential rental income. If you are looking to invest in an existing rental property, you should understand the principles of gross rent multiplier. Read more about it in my previous blog post.
When developing multi-unit project, you want to limit your holding costs and construction schedule. The time it takes to get permits is a given and really cannot be controlled. However, you can use alternative methods to construction to reduce your construction timeline, thus adding months of rental income.
I’m alluding to prefab construction. If you follow my blog, you know I am the San Diego rep for Connect Homes. We build modules in our San Bernardino factory at the same time a local contractor builds the foundation. This dramatically reducing construction time and keeps the process more predictable.
Connect Homes Modules Installation in Orinda
In one day, ten prefab home modules for two Connect Homes get set on their foundation in Orinda, CA. Ten trucks delivered the 90% completed modules to the site.