Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN DIEGO-The most recent Apartment Research Report released by Marcus & Millichap reveals an already strong and still strengthening apartment sector in the metro area market. According to the report, a growing job market “strong net in-migration and skyrocketing home prices” are placing San Diego “on track to post solid gains in sales, rents and occupancy this year.” Kent R. Williams, first vice president and regional manager of Marcus & Millichap’s local office, says there are key indicators to the sectors solid fundamentals.”San Diego’s economy is gaining momentum as almost all industries have increased their hiring,” says Williams. “Strong job growth has translated into high tenant demand for apartments this year and has kept San Diego’s rental market among the top performers in the nation.”Chief among job growth industries are the service and construction sectors, according to the report. The service industries have experienced 9,800 new jobs over the last year, while construction has seen 8,500 jobs created. Another sector that’s on the rise is the leisure and hospitality industry, where 9,600 jobs have been added since the start of the year. Overall, the report says “employment growth is expected to reach 2.3 percent this year, with employers on track to add a total of 29,000 positions.” On the construction side, new apartment development is off 27% from the previous year with only 3,000 units on tap for this year. One bright spot in construction is the building of condos. “The condominium market continues to yield higher profits than apartments on a per-unit basis,” according to the report.On tap are new projects that are in the Mission Valley area of Downtown. Two projects there will count nearly 1,400 new units to the area. One other area that’s a hot submarket is Carlsbad where some 700 units are set for completion this year.The skyrocketing home prices are one of the main reasons for the increased demand in apartments, with the affordability rate down to 10 %. But rental rates are strong, too, with the average asking rent rates expected to hit $1,165 per month by the end of the year.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS Fall 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.