San Diego Rental Pace Sets Record
San Diego County will “almost certainly” add more than 10,000 new apartment units to the housing stock by the end of the year, more than any previous year, according to an apartment survey conducted by John Burnham & Co.
“How long the area can sustain this high degree of activity is anybody’s guess,” said George Carlson, an apartment investment specialist with the firm. “Right now it appears that loan rates could slip lower and--despite all the flat tax rumors--this could carry investor and developer interest well into 1985.”
Carlson also attributed the apartment construction activity to lack of rent control in the county and to a strong demand for rental units, particularly in North County, which accounted for a total of 5,501 new rental units for the first 11 months of 1984.
The 11-month permit volume for the entire county reached 8,070, valued at $279,640,744, doubling the comparable 1983 11-month period total of 4,028 apartment units valued at $138,769,976.
Apartment unit transfers for the first 11 month of this year totaled 21,925 units, a 38% jump over the 15,822 units transferred through November, 1983, Carlson added.
New condominium construction activity continued to parallel the apartment boom, with November permits up 106% from November, 1983: 245 units valued at $12,758,288 contrasted with 131 units valued at $6,181,473. For the 11-month period, new permits totaled 6,009 ($299,749,213 valuation), 146% above the 2,462 units ($121,894,689 valuation) through November, 1983.
