Rent increases in San Diego due to higher demand, lack of supply

Zillow says most new apartments are high-end units
Posted at 7:56 PM, Jul 27, 2016
and last updated 2016-07-27 22:56:43-04

New apartments are going up in San Diego. So why isn't the rent going down?

Zillow just released numbers that show most of the new units cater to high-end renters.

"I'm from Kansas City, Missouri, actually a small town,” said Stephen Bush. 

From Kansas City to San Diego, the difference in the monthly cost for a home was already a shocker for Bush and his family. 

"There, I was actually a homeowner. And came here and now we're a renter in a place a third the size,” said Bush.

Bush currently rents a condo in Bay Ho for about $1,600. In the last year he and his wife have been looking for a bigger place to rent.

"We don't need a high-end place to rent. But at the same time, we would like a nice neighborhood to raise our family. You know, good schools,” said Bush.

Zillow discovered what's making it more difficult for renters. Since 2014, Zillow found that 64 percent of new apartments were high-end units. Rentals with a median rent of nearly $3,000 a month.

“It just makes it incredibly difficult for us. We have three children, two dogs,” said Bush.

Only 11 percent of new construction has been at the low-end with a median price of $1,750.

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"I feel like if you're out here trying to do it on your own, it's pretty difficult,” said renter Chris Nunez. 

He has found a way to afford a two bedroom luxury apartment in Mission Valley for $2,400. 

"It's three of us so it's a lot easier to afford and still be able to pay all our bills,” said Nunez.

Rent of $2,400 is a bit steep for Bush and his family.

"It's almost like a mortgage payment,” said Bush.

But here in San Diego, buying isn't an option right now.

10News spoke to the president of the San Diego County Apartment Association, Jeff Hickox. He says it's also become more expensive to build. And there's less and less land available. He says affordable housing can be found in the East County, South Bay and North County.