As prices increase for gas, groceries and just about everything else, San Diegans may soon face another strain on their wallets.
A USC study says San Diego is expected to have the greatest increase in rents and lowest vacancy levels in the Southern California region in 2011.
The study forecasted a 0.7 percent increase in rents in the coming year.
Rents in San Diego County declined only 1.3 percent overall in 2010 and the average rent was $1,323. The county’s occupancy rate was 95.1 percent.
Like the rest of the Southern California region, San Diego is expected to see modest improvements in employment.
“The steady stream of defense contracts and strong growth in biotech industry are predicted to buoy the region over the next year and, in turn, keep rents from falling further,” according to the study.
The 2010 Casden Real Estate Multifamily Market Forecast was published the Lusk Center for Real Estate at the University of Southern California.
The report examined Los Angeles County, Orange County, Inland Empire, and San Diego County.
The full report is available here.
