A recent national apartment report published by ABODO showed the top ten metro areas with rent increases and decreases from August 2016 to September 2016. San Diego apartment rents rose 2%, while neighboring Los Angeles actually dropped by 8%. These numbers are based on one bedroom apartments. For a complete list of the various metro areas, see the infographic below.
Feeling the Squeeze
Nearly half of U.S. renters are considered cost-burdened according to data the Joint Center for Housing Studies (JCHS) of Harvard University gathered from the most recent American Community Survey. The JCHS reports that 49.3% of renters in 2014 were classified as “cost-burdened”. To fall into this category, at least 30% of their income went to rent and utilities. Severely cost-burdened renters – those spending at least 50% of their income on rent and utilities – made up a stunning 22%.
Zumper mapped San Diego apartment rents in July and found that the median price for a one-bedroom unit to be $1,550, while two-bedroom units were $2,120.
With so many renters feeling the squeeze from ever rising rents, some have found stability by purchasing their home. In San Diego, finding affordable housing is a challenge, but there are opportunities out there for those willing be open to different neighborhoods and housing types. When you buy your home, you take control of your destiny and have more freedom to upgrade your home.
Before Your Buy, Do Your Homework
While owning your home sounds great, it isn’t for everyone. A good first step is to use a buyer vs. rent calculator, like the one by Lending Tree, to see if it makes more sense for you to buy or rent your next home. All you need to do is enter some basic information about your situation and it will tell you if it makes more financing sense to buy or rent.
Once you determine that you are ready to buy, find an agent and loan officer. If you are moving to and in San Diego, contact me at firstname.lastname@example.org and we can schedule an initial call to go over the basics. I won’t pressure you into any decision. If it seems like we are a good fit, great. If not, no worries, you at least learned a bit more about the home buying process.
Whether you buy or rent your next place, please, do your homework. The extra time and energy will pay dividends.