San Diego's post-pandemic rent spike is softening
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The average asking rent in San Diego is slightly below where it was a year earlier, but it's still up nearly 25% from the end of 2019, according to CoStar Group data.
The big picture: A surge in new apartments is helping to ease rent hikes across the country. But the national average rent remains 19% higher than pre-pandemic levels, the data shows.
Zoom in: Another way to see the subtle cooling in the market is in the amount of property managers that are offering rent sweeteners such as free weeks or months of rent or free parking, per a recent Zillow report.
- 34.3% of San Diego listings included a concession in July.
- That's up 12.4 percentage points from where it was a year ago.
- Analysts at Moody's say concessions are at the highest level on record.
Catch up quick: San Diego last year issued more permits for new homes than it had in any year in decades.
- The region as a whole issued 20% more permits in 2023 as it did in 2022, even as statewide permitting declined by 5%.
What's next: Landlords could raise rents as construction slows and people postpone home purchases.