San Diego is a coastal town with more than 140 sunny days, low humidity and very few mosquitos. Ocean-access properties always seem to weather the storms and are the first to come out of a recession. The rent prices have increased 13.6 percent between the 3rd quarter of 2014 and the 3rd quarter of 2015, according to Rent Range real estate data. The vacancy rate availability is 3.62, according to the Department of Numbers. The property value has increased 5.6 percent in the last year, and in some parts of the county has gone up as high as 11 percent, according to the HomeDex report published by the National Association of Realtors.
San Diego now has over 15 ZIP codes where prices have returned to or surpassed the high point of 2006.
Not only do we have a beautiful location, living closer to the water has been a pipe dream for many homeowners, and the prices reflect that. A consideration when purchasing a San Diego property for your portfolio is holding it, reaping a high percentage rate as well as an impressive increase in your property value.
As the Baby Boomers are retiring, San Diego is one of the destinations that many have put on their bucket list. Although not affordable to all, it does present opportunity to purchase a property a little further from the water, fix it up and put on the market to be rented. More and more Boomers are looking to be near their families and are skilled to do the repair work themselves. Frequently the two-bedroom houses are being converted to three-bedroom homes, which obviously increases property value and rental price. Short-term vacation rentals are rapidly growing. The rent may yield $5000 per month for a short-term rental during the summer season and longer rental at an average of $2200 per month.
Also posting relatively robust gains was the construction industry, with 1,700 jobs, driven largely by a seasonal trend when warmer weather sets in. Specialty trade contractors accounted for 65 percent of the growth.
Even with the impressive gains posted by construction and leisure, the year-over-year job growth of 2.7 percent was widespread across multiple sectors, according to economist Lynn Reaser in a recent report.
“Compared with a year ago, San Diego’s job count is up by nearly 37,000,” said Reaser, chief economist of the Fermanian Business and Economic Institute at Point Loma Nazarene University. “Nearly all sectors and industries have added to their payrolls. Some of the largest gains have been in construction, engineering, health care, public education and temporary help.”
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