SAN DIEGO (KGTV) — Thousands of new apartments are set to open in San Diego County this year, with the largest complexes outside of downtown San Diego.
"Rents have now escalated high enough where it makes sense to build in the suburbs," said Nathan Moeder, principal with real-estate consulting firm London Moeder Advisors.
Analyzing data from real-estate tracker Co-Star, Moeder said there would be 4,600 new apartments coming online in the county 2022. While the amount is similar to recent years, the shift is that the biggest complexes won't be in downtown, but in suburbs like Chula Vista, Mission Valley, Kearny Mesa and La Mesa.
"I think we've run out of land and developers are just looking for land wherever they can build projects," said Moeder.
The complexes will have a wide range of amenities to attract renters to live outside the heart of the city.
At The Avalyn at Millenia in Otay Ranch, for instance, renters will have access to a resort-style pool, coworking space, speakeasy and even a music studio. The complex is the largest scheduled to open, with 480 units from studios to three-bedroom townhomes. Rents will range from the low $2,000s to the mid $4,000s.
"Simply put, San Diego has a tremendous need for housing. On the supply side, San Diego, like much of California, cannot build housing quickly enough given the scarcity of buildable land and the lengthy timeline to obtain government approvals," developer Ryan Companies said in a statement. "On the demand side, few locations can compete with San Diego’s coastal location, beautiful year-round weather, and high quality of life."
Moeder says the average rent for the units coming online region-wide is about $2,800 a month, and rents are rising 6 to 8 percent annually.
A key reason -- the region needs about 17,000 new homes per year to keep up with demand, but is nowhere close.