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3 Things That Are Affecting the San Diego Rental Market Right Now

2020 has been a roller coaster of a year for many of us. Covid-19 has put San Diego in a situation like we have not seen before. It has affected the economy, local businesses, and the real estate market. Over the last couple months, we have seen a few trends start to emerge that are affecting the rental market.

E-Learning

As you may know, universities across the state have transitioned to e-learning. This means that campuses are closed and all classes are online for the foreseeable future. You might be wondering how that affects real estate in San Diego.

Typically we see a surge of applicants and homes on the rental market in August because of the influx of college students that are looking for a place to live. However, with learning taking place online this year, students no longer need to live near campus. They can live anywhere in the city or even move back home. This means the demand for rentals near SDSU, USD, and UCSD are going to be much lower. Many homes in these areas, especially those with 4+ bedrooms, will likely struggle to rent and the rent prices will have to be lowered.

De-urbanization

With many restaurants, bars, and recreational areas closing or having limited hours, people have less desire to live in cities. Much of the selling point for homes and apartments in these areas is their proximity to popular bars and restaurants. With these being closed or open at 25% capacity, renters are no longer interested in paying downtown prices for decreased attractions in the area.

Additionally, many renters don’t need to live near their workplace anymore. Covid-19 has allowed many businesses to work remote, meaning that proximity to the office doesn’t need to be a factor when deciding where to live. Now, renters are seeking homes with more space, a yard, or a pool so they can have in-home entertainment while many San Diego amenities are closed.

Uncertainty in Regard to the Overall Market Condition

A lot of renters and homeowners aren’t clear on the state of the market right now. Things are changing very quickly and people aren’t certain on how Covid-19 is affecting prices and demand. This has led some homeowners to try and sell as opposed to holding their property and continuing to rent it out.

We understand the concern about the market and the dilemma of what to do with your rental property during uncertain times. You are always welcome to reach out to us for help and subscribe to our monthly newsletter, where we update you on important market information and top San Diego real estate news.

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Steve Welty

Steve Welty is the founder and CEO of Good Life Property Management. Since its establishment in 2013, Steve and his team have made owning rental property easy for over 1,000 San Diego homeowners.Their purpose is Life Improved–creating opportunity, enjoyment, and impact for their community is what matters most. DRE #01744610

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Hey guys, Adam Manley here from Good Life Property Management. Here to bring you guys another quick video on some of the emerging real estate market trends that we’ve seen here in 2020. I actually read a great article a little bit earlier this month in the San Diego Creative Investor Association’s August newsletter written by G. Brian Davis of Bigger Pockets. He had some really good insights and some of the trends that he identified, I think, are really applicable to what we’re seeing in San Diego. So I thought I’d share some of those with you guys, kind of give you some of our thoughts about those and hope it makes you a stronger investor and homeowner or rental property owner here in the greater San Diego area. So let’s jump right into them. So one of the first things he identified was this trend towards moving towards e-learning. And why is that going to be an issue? So here in San Diego, obviously, we have some major universities and colleges that are very popular for renters to be around. I’m specifically thinking of the college area surrounding SDSU. And I think why this is a concern for rental property owner specifically is because as renters move more towards this e-learning and kind of, you know, working from their dorm and stuff like that or from their own property or condo, there is going to be less of a desire to be really close to campus. So I think that is going to impact some of the rental prices for properties near universities and probably the long term or short term, you know, just kind of one trend we’re starting to see. And I know I’ve talked about this a little bit before, but one of the other trends he mentioned was this new idea called de-urbanization. And really what this is is a desire from both owners and renters to kind of move away from urban living. So many of the things that make living in an urban city center very popular like proximity to work and being close to, you know, major attractions and having great walkability have kind of gone out the window with COVID, you know, with people working from home, you know, there’s less of a need to be close to work with many things closed and are around these urban centers. That walkability factor is really less of a desire for prospective renters and buyers. So we’re seeing more of a trend to live in properties with their own backyard or their own personal private space just because that is really what we’re allowed to do right now. And I think those types of trends will continue into the future as well. Another thing is I think both owners, renters, investors still have a lot of questions and concerns about the general state of the market and economy. And I think that’s feeling a lot of uncertainty right now, you know, both within the sales market and within the rental market. So I think that’s a factor to consider really just, you know, no one knows what’s going to happen next. So it’s hard to say which of these trends is likely to stick around, but I think we can all agree that COVID’s changed some major things of how we handle our day to day lives and things like going to work, things like going to school have really changed forever. So like I said, it’s hard to say which of these will stick around, but we’ll be sure to keep you guys posted on any trends we’re seeing or anything we find of value that we want to highlight to you guys. So thanks again for watching and stay tuned for the next one.