(KGTV) - The City of San Diego now has one of the most expensive multi-family housing markets in the country, according to research from AppFolio.
Apartment rates have risen over the past several years to $1,871. That pushed San Diego into the list of the top five priciest cities behind Los Angeles and San Francisco.
San Diego’s strong economy is one of the reasons for the increase, AppFolio reports.
“A lot of the growth is driven off of jobs—and that is the number one driver of rent growth in most cities,” says Nat Kunes, VP of product management at AppFolio told GlobeSt. “When a city experience job loss, people move away. When a city experiences job growth, people move in. You see that trend follow in most cities in the US. You see that closely coupled with construction so that people have homes to move into. You also need the right type of supply, whether it is for young families or young professionals.”
Kunes says tech jobs, with their higher salaries, are boosting the demand for higher-end housing. He also believes there is no end in sight to the rent increases.
“I think that rents will continue to grow pretty rapidly, but I don’t think that it will overtake any of the cities around it for most expensive rent,” he says. “It is a significant jump from San Diego to L.A. I think the rent growth rate will maintain a healthy pace for the next 18 months to two years.”