Apartment Vacancies May Be in Downswing

SAN DIEGO-A new study shows San Diego’s apartment market may be showing signs of loosening, with the countywide vacancy rate starting to rise as a result of the boom in apartment construction and the slow economy.

The March survey, by MarketPoint Realty Advisors in San Diego, shows that the rate is still well below 3%. But at 2.58%, the rate is still at its highest level in five years.

The rise is the vacancy rate is largely due to an increase in the high-end, or luxury, portion of the market–apartment buildings of more than $1,000. Of the 3,035 units reported vacant, just 290 were priced at less than $800 a month, according to the MarketPoint survey.