San Diego Reaches Top Rank - Most Expensive City in US in 2023

San Diego - America's Most Expensive City in 2023 according to U.S. News and World Report.  The sharp increase in housing purchase prices, apartment rents, and gasoline prices within just a few years is largely responsible for topping this list.  

Some Airbnb Rentals Shifting Back to Monthly Apartment Rentals

The inevitable paradox of profit is seeing a reckoning in some market areas where investors purchased apartments, condos, and single-family homes to convert to short-term rental use.  The combination of competing inventory and operating expenses (especially the property taxes and local municipality hotel taxes, which are now being enforced in most markets) have changed up the math and have some operators shifting the properties back to monthly rentals.  

Some Airbnb owners are shifting back to monthly rentals.  

City of San Diego Homeless Ban

 

In response to the concerns of many property owners, the City of San Diego has implemented a new ban on encampments in public areas.  City of San Diego Homeless Ban

San Diego Approves New Tenant Protection Ordinance

 

New laws to take effect for local apartment owners.

According to KUSI, "The Tenant Protection Ordinance will apply protections from day one of a lease with exemptions for short-term leases, offer financial assistance to tenants from landlords when a tenant’s lease is terminated through no fault of their own and have accountability measures to punish those violating tenant protections."

Bed Bath & Gone - New Retail Uses Planned For Commercial Real Estate Spaces

 

Bed Bath & Beyond Store Closers to Add New Retail Inventory

CNN reports on the Bed Bath & Beyond home goods retailer that was not able to weather the pandemic and increases online shopping and is having to liquidate its commercial real estate portfolio. Most of the stores are in the suburbs of mid-size and large cities with square footage under 50,000 square feet.

More Tiny Houses Coming to San Diego

 

More Tiny Houses Coming to San Diego

Section 8 Policies Have Been Revised

New Section 8 Policies in the City of San Diego 

A lawsuit has prompted changes to Section 8 threshold levels in multiple zip codes.  This impacts both rental property owners and families that can qualify for the Section 8 housing program. 

San Diego Authorizes Rapid Approval of Affordable Housing Projects

 

The City of San Diego is starting to pull out all the stops to get more housing approved and online.  The Mayor has issued a new executive order.  It will be interesting to see how many developers step up based on the potential for fast-track project approval. 

San Diego Executive Order For Rapid Approval of Affordable Housing Projects

Rent Cafe Ranks San Diego As One of the Most Competitive Apartment Markets In the U.S.

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 In Downtown San Diego Consider Cancelling Leases Due to the High Homeless Population

  

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 Policies Entering Into First Year

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. 

Markets Level Off Or Decline In Final Months of 2022

 

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. 

Retirees Reconsidering Their Next Move

 

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

U.S. After Tax Income Calculator From Forbes

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.  

 

 

Airbnb Investment Boom Leads To Increased Vacancies

 

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.  

  

City of San Diego Short-Term Rental Regulations

 

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

U.S. Southern Border Patrol Case Counts Increase 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."

Border Patrol Case Counts Up in 2022

Governor Targets Under Utilized Commercial Land For Future Housing Development

 

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

Short-Term Rental Market Changes

 

 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.  

Home Ownership in San Diego Increasingly Out of Reach

 

NBC news reports on the San Diego Home Prices and what a family needs to earn to buy a home.