RISING INTEREST RATES COULD INCREASE RENTAL DEMAND IN SAN DIEGO
Higher mortgage interest rates will push more people into the San Diego County rental market and likely increase rents, said a new report from Marcus & Millichap.
The national commercial real estate brokerage firm’s fourth quarter analysis said the gap between between a monthly mortgage payment and average rent has grown, making renting a better — and necessary — option for most San Diegans.
Right now, the firm said the monthly mortgage cost is about $1,724 more than renting. That is roughly $500 more than last year, making homeownership even further out of reach.
“You are starting to see rent growth accelerate right now,” said Aaron Bove, a senior vice president at Marcus & Millichap. “We’re really going to see it (accelerate more) in 2019 if everything stays the same.”