Over the next year, the West Coast will see some of the biggest rent spikes in the United States. According to Zillow, rents across the nation are expected to grow by 1.7%, to a Zillow Rent Index of $1,429 per month.
Why the West Coast?
“Job opportunities and high salaries are drawing millennials to tech centers like Seattle and San Francisco,” Zillow reports. “But the demand for a limited number of rental units available continues to drive up costs.”
So what does that mean to San Diegans? Well, on the list of rent spikes in 2017...we’re in the top 10. Number 8 in the top 10, to be exact.
Rents in the San Diego metro area are forecasted to be among the top places with fastest growing rents -- and we could see a 4.7% spike in the next year alone.
To put the numbers into perspective, take a look at the following:
Right now in L.A: $2,593
2017 forecast: $2,718 by the end of next summer
Right now in San Diego: $2,427
2017 forecast: $2,541 by the end of next summer
In the map below the top 5 spots where Zillow expects to see rent go up in San Diego County are marked in RED (you'll have to zoom in). The top 10 spots in the nation where Zillow expects to see rents spike are marked in GOLD. Eight out of the top 10 are on the West Coast.
* The Zillow Rent Index (ZRI) estimates median rent for a geographic region on a monthly basis. The Zillow Rent Forecast is our prediction of ZRI over the coming year, and is available at the ZIP code, city, county, metro, state and national levels. Forecasts are adjusted to be consistent within nested geographic levels and smoothed to reduce noise and seasonal trends.