RISING INTEREST RATES COULD INCREASE RENTAL DEMAND IN SAN DIEGO

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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.”