The decision to buy a home in San Diego is being made easier than ever as rents go up, up, UP!
It seems there is no shortage of news items like this these days….
Recently, CNBC’s Diana Olick reported that rents in the residential housing sector continued to rise in 2014. These changes have been surprisingly severe here in San Diego where the shortage of rental units is a particular problem.
In an interview with Jed Kolko, Chief Economist at Trulia, Mr. Kolko said:
“Rents are rising because of strong demand that supply hasn’t kept up with. Nearly all the new households are renters, and young people moving out of their parents’ homes will keep fueling rental demand.”
Where are rents headed in 2015?
The question now is where rents will be heading over the next twelve months. In a press release last week, Zillow chief economist Dr. Stan Humphries predicted residential rental prices will continue to climb in 2015:
“Home value appreciation will continue to cool down, from roughly 6 percent now to around 2.5 percent by the end of 2015. But rents will see no such slowdown, and will continue to grow around 3.5 percent annually throughout 2015. As renters’ costs keep going up, I expect the allure of fixed mortgage payments and a more stable housing market will entice many more otherwise content renters into the housing market.”
However, those potential buyers must make a decision quickly because, as Kolko explains:
“Paying more on rent makes it harder for would-be homebuyers to save for a down payment.”
Ryan Severino, a senior economist at Reis, in Olick’s CNBC article stated the obvious:
“Landlords should still be able to push asking rent increases on to their tenants.”
The Bottom Line
If you are interested in fixing or lowering your housing costs instead of continuing to rent, it probably makes sense. Call us today at 888-333-0075. We can help!
