SAN DIEGO (KGTV) — A newly-released report shows that San Diego has surpassed San Francisco as a more expensive city for renters and now ranks in the top three highest rental cities in the United States.
According to Zillow's June 2023 rental market report, San Diego emerged as the top city with an average rent of $3,175, surpassing San Francisco's average rent of $3,168.
The study says that this is the first month on record in which typical rents in San Diego exceeded those in SF. Before the coronavirus pandemic in February 2020, San Francisco rents were 28% higher than those in San Diego.
San Diego ranked third in the nation, following San Jose and New York City. San Jose was identified as the priciest major market nationwide, with an average monthly cost of $3,411.
- San Jose: $3,411
- New York City: $3,405
- San Diego: $3,175
- San Francisco: $3,168
- Boston: $3,045
The data also shows that the weakest year-over-year rent growth can be mostly found in the West. Rents in Las Vegas are down 1.8% and down 0.8% in Austin, Texas. Phoenix, Seattle, and San Francisco have seen fewer increases with 0.2%, 1.0%, and 1.2%.
Researchers believe the particular mix of cities was most exposed to tech industry hiring weakness, as well as some of the top destinations to which remote workers decamped earlier in the pandemic.
Zillow officials have reported that the average asking rent across the country increased by $12, or 0.6%, between May and June.
According to the data, this brings the typical national asking rent to $2,054, which is 4.1% higher than it was in 2022. The annual growth rate has been steadily decreasing since reaching a record high of 16.2% in February 2022.
The full report can be read here.
