San Diego is listed as one of the top most competitive apartment markets in the United States, according to a report released by Rent Cafe. The study has San Diego ranked as the 13th most competitive apartment market in the United States, with a 97.1% apartment occupancy rate and a 55.3% apartment lease renewal rate, with most apartments having 22 applicants.
Apartment renters want to pull out of leases in downtown San Diego due to the increase in the homeless population. Renters that have leased downtown are reporting that they are concerned enough about the increase in the homeless population that they are considering relocating.
San Diego short-term rental regulations are taking effect for the first time this year. The City has announced that the number of whole-home short-term rental applications for San Diego was less than half of the 5,416 maximum licenses allowed. While the Mission Beach area, which has a separate allowance, had whole-home short-term rental applications that exceeded the limit of 1,100.
Union-Tribune subscribers can read the full story here City of San Diego Short-Term Rental Regulations. The City is going to continue to accept applications until the 1% housing stock limit is reached.
Slate has an article discussing residential real estate values leveling off and some markets starting to decline in the U.S. They interview Arpit Gupta, a finance professor at New York University and look at regional trends.
The New York Times has an interesting article about changes in the buying patterns of retirees. Realtors report that retirees are now looking in markets less likely to experience extreme weather events, such as wildfires, drought, and flood. The risk aversion makes sense in light of higher insurance premiums.
Retirees Reconsider Housing Decisions In Light of Increased Storms and Flooding Events
Curious about what your after-tax income by state will be in 2022? Forbes has an app for this that will allow you to compare tax rates by state.
Time magazine reports on the most recent trends for short-term rental income properties. Investors have been very active in this sector which has driven up inventory and reduced occupancy in some market areas. Average daily rates have not gone down but have remained level.
After many years of debate, the City of San Diego has formalized its short-term rental regulations. The new laws have been summarized and posted on the City website.
City of San Diego Short-Term Rental Regulations Implemented in 2022
"The U.S. saw more than twice as many migrants this year from Venezuela, Cuba, and Nicaragua compared to the previous fiscal year."
The Governor of California is trying to clear a path and make it easier for commercial real estate developers to re-purpose commercial land for new housing inventory with two new laws.
California Governor Signs New Law Expanding Commercial Zoning Rights To Increase Housing
As larger investment groups have gone into the short-term rental market, the Airbnb Industry Is Changing with fewer single property owner/operators. We are also seeing broader advertising and more competition among rental units in many markets. Websites that previously only advertised apartment units are now starting to sell short-term rentals. The City of San Diego has finalized its short-term rental permit requirements and limiting the number of permits it will issue each year.
Appraisal Buzz reports on the new infrastructure bill that was recently signed into law.
What Impact Will the Infrastructure Bill Have on the Housing Crisis?
First Tuesday is one of my favorite resources for real estate information.
This site is designed for real estate agents but also has value to real estate buyers.
This week they are reporting on the Real Estate Buyers Listing Agreement.
KPBS reports on the Chula Vista Waterfront Project. This massive development will be changing the face of South Bay San Diego.
NBC news reports on the composition of San Diego Millennials (aged 26 to 41)- a driving force behind our local real estate housing market and demand as tenants for the apartment sector. The U.S. Census Bureau says 70% are home grown, 9.2% are from L.A, and 2.37% are from the San Francisco bay area. The other major sources of San Diego Millennials are Chicago, Phoenix, and Seattle.
Years in the making, the City of San Diego has approved a new plan for short-term rental regulations.
All of the details are reported here: New Short-Term Rental Laws Passed by City of San Diego
Worried about the fact that there is no reasonably affordable housing in San Diego?
Relax - The Government Says It Has A Plan!
"WASHINGTON — Amid skyrocketing housing prices, President Joe Biden's administration is taking new steps to spur more affordable housing as the White House seeks to close the U.S. "housing supply gap" in five years.
Among the efforts is increasing federal assistance to help finance and produce more factory-built manufactured homes including mobile homes.
Freddie Mac recently announced it is exploring purchasing chattel loans, on which the majority of homeowners who buy manufactured homes rely rather than traditional mortgages.
The Federal Finance Housing Agency has also committed to work with lenders to begin a pilot program to offer financing for the construction and renovation of accessory dwelling limits, which are typically cheaper than traditional homes. This housing includes garage apartments, backyard homes and in-law suites.
These and other measures were outlined in a new housing supply action plan the Biden administration unveiled Monday." Source: USA Today
Bayfront Project In Chula Vista Is Set To Move Forward
The resort development is part of a larger master plan that has been decades in the making with the Port of San Diego.
Chula Vista Bayfront Master Plan
The Chula Vista Bayfront Master Plan is a local and state-approved land use plan by the Port of San Diego and City of Chula Vista. The plan envisions:
70 acres of new parks (100 acres total, including existing parks)
120 acres of open space, habitat replacement, wetlands and ecological buffers to protect wildlife habitat, species and other coastal resources
Shoreline promenade, walking trails and bicycle path network
2,850 total hotel rooms
600,000 square feet of restaurant, retail and marina-support uses
220,000 square feet of mixed-use commercial recreation/marine-related office uses
1,100 – 3,000 space parking facility
The City of San Diego has come out with an online map of sites that are a part of the Housing Solutions regulations based on their location within a Transit Priority Area and zoning for multiple dwelling units
Complete Communities Location Map
Sixty Minutes reports on the causes of rapidly increasing rents and the housing shortage.
Rapidly Increasing Apartment Rents
Estate attornies are weighing in on the current and proposed estate tax legislation. California Estate Tax Laws 2022
The new state laws intended to increase the housing stock are expected to lead to more disputes over ADUs here in San Diego.
Accessory Dwelling Units A Concern To Local Property Owners
Hopefully, SeaWorld will find a safe place for this enterprising little guy. He swam up some inland channels and then tried to head west toward the ocean by land, only to encounter a bunch of pesky humans and freeway traffic! He was unceremoniously netted and hauled back to SeaWorld.
California SB 10 took effect on January 1, 2022. The new state-wide bill impacts vacant land with the potential for apartment and multi-family developments throughout San Diego. The bill authorizes local governments to zone most parcels (there are a few exclusions) for up to 10 units of residential density when the parcel is located in a transit-rich area, a jobs-rich area, or an urban infill site. Just as apartment rent control laws took a while to be processed by the market, it is expected that this law and how local regulators implement it will take some time to sort out. A copy of the bill can be found here. New Law Encourages Apartment Developments & Multi-Family Housing
Once the local regulators weigh in to which sites qualify, then the brokerage, appraisal, and banking community will then sort out how this impacts highest and best use, property valuations, and underwriting rules for new commercial loans and the commercial appraisals that will back these loans.
