Developers delivered more than 3,000 apartment units last yearand are on pace to add 3,400 more this year. But even with the newsupply, the market remains tight with an average 2.1%vacancy factorreported in the second quarter of 2000--virtually unchanged from ayear ago.
At worst, vacancies are expected to edge no higher than 2.6%despite the blazing construction cycle. Rents continue to postrobust rates of growth, with last year's 9.2% increase in averageasking rents to be followed this year by another 8.3% rise. Averagemonthly asking rents were $889 in the second quarter, spiking up to$1,026 in such hot high-tech-employee rich areas as Mira Mesa.
High single-family home prices, rising at a nearly a 17% clipfrom a year ago, continue to contribute to drive up rentalrates.
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