As local San Diego property managers, we have seen a lot of trends in the sales and the rental markets, and we can easily acknowledge that 2020 has been a unique year. The real estate market is always changing, and with everything that’s going on right now, it’s hard to say where we’ll be as buyers, sellers, investors, and owners at the end of the year.
You should feel comfortable if you currently own Diego real estate, and if you’re thinking about investing or renting out a home, it’s a good time to do so. San Diego has grown in popularity as a place to visit, live, and invest. This is part of the 2020 forecast, and why we think the market will remain stable for the rest of this year and into next year.
San Diego’s Economy Remains Strong
One excellent reason to continue renting out properties in San Diego is the strength of the local economy. We are California’s second largest city, and the opportunities for growth are continuing to present themselves. The employment rate has remained high, and our military bases have sustained the local economy even during periods that the private sector has struggled. We don’t think this will change at all through the rest of the year.
Military personnel from the Navy and Marines especially are coming into the area on a regular basis, and data on the local economy is continuing to outpace nearly every national average. We’ve always had steady job growth and a stable market in San Diego. Investors know that when they buy property, they will have access to a financially secure tenant pool.
Interest Rates Support Investing Now
Another good reason to invest now in a new San Diego rental property is that interest rates are lower than they have ever been, and they’re likely to remain affordable. Rents have not decreased, even with the pandemic, and owners can expect to earn consistent income whether they buy a single-family San Diego home or a multi-family building or unit.
Demographics Support Growing San Diego Tenant Pools
Our real estate market is not exempt from the shifting demographics in renters. We will always have a presence of military families looking for good rental homes, and there is also the influence of millennial renters, which is having an impact on the current and future market forecast. Most people in this demographic prefer to rent because they like the flexibility and the freedom that comes with it, even as they move forward with their careers and begin raising families.
There’s also an influx of active adults who are thinking about retirement. They prefer the low-maintenance lifestyle that comes with rental homes, and San Diego is an ideal place for retirees seeking great homes.
Supply and Demand in the San Diego Rental Market
We’ve spoken to a lot of homeowners and investors who worry about California’s increasingly tenant-friendly rental laws. Rent control and just cause eviction have made a real impact in the rental market this year.
However, we’re still seeing a rise in home values and an increase in rent, even as it’s capped. You won’t have to worry about losing money on your investment property here, even with stricter laws.
If you’d like to talk more about the San Diego rental market or your property in particular, please contact us at RentSimpli.