The most recent data from the RealFacts December survey of 429 largeapartment complexes in San Diego County shows the year-end average occupancy rate was 95.8%--falling just 1.9% over the year, while some other California markets have posted double and even triple that amount.
Average rents remained unchanged in the fourth quarter--except for two-bedroom townhouses and three-bedroom apartments and townhouses, where average rents increased by 4.8%, 0.86% and 1.8% to $1,260, $1,400 and $1,351, respectively, according to Gerald P. Cox of San Francisco-based RealFacts.
"While these unit types only make up around 7.5% of the total apartment stock, it does seem to confirm that, despite low interest rates and a hot single-family market in the county, first-time buyers are still unable to afford to move from rented to owned accommodation," Cox says. "This is a plus for this multifamily market where average rents, for all unit types, rose 5.5% during 2001 to $1079 a month."
According to the recently updated Ann Roulac/RealFacts Pipeline Report, 2,685 new apartment units were completed in 2001 and more than 4,500 units are scheduled to come on-line in both 2002 and 2003.
The diverse county employment base, including defense-related industries, has helped the area avoid some of the impact the recession has caused elsewhere, Cox says. The unemployment rate for the county in December was 3.3%, 2.5% lower than the national rate.
"Should this strength continue, it bodes well for the eventual absorption of these new apartments," Cox says.
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