San Diego rents decreased to close 2023, but not enough to dent affordability
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The asking rent for a two-bedroom apartment in San Diego actually dipped in the second half of 2023, but not nearly enough to make housing costs manageable.
Why it matters: A San Diego household still needs to earn more than $99,000 a year to avoid spending upwards of 30% of their income on housing — or nearly three times the minimum wage.
By the numbers: Average rent for a two-bedroom unit reached $2,530 in last year's second quarter, then fell in both the third and fourth quarters, per a report this month from the California Housing Partnership and the San Diego Housing Federation.
- The decline isn't delivering significant relief yet — the average asking rent of $2,479 to close last year was still 1.6% more than in 2022.
- Rent amounts shot up after the pandemic, increasing 23% from $2,047 at the end of 2020 to last year's peak.
Yes, but: The percentage increase in asking rates — though still positive — has been trending down since spring 2022.
The bottom line: Despite the recent decline, 61% of low-income households are spending more than 30% of their incomes on rent — the standard for a rent-burdened household.
- The same is true of 32% of moderate-income households — those earning 80% to 120% of the region's median income.