Rental Boom Stays Strong in San Diego

The apartment construction boom in San Diego County shows no signs of abating, with new apartment construction permits in August exceeding August, 1984, levels by 145%, according to the latest monthly report of apartment and condominium construction by John Burnham & Co.

New apartment permits for August were valued at $49,913,298, for 1,560 units, up from $20,343,473 (555 units) for the same month last year. So far this year--through the end of August--permit valuation is $321,664,881 (9,702 units), up 69% from the $190,080,466 (5,389 units) for the first eight months of 1984.

In county sales activity, the apartment brokerage firm reports that 1984’s record pace is being bettered so far this year with a total of 16,134 units changing hands through the end of August, slightly ahead of the 15,871 for the same period last year.

Burnham’s George Carlson attributes the boom in new apartment construction to a combination of conditions: “Few apartments were built in the early part of the decade and many developers concentrated on condominiums in 1983 and 1984. Now there’s an abundance of condos and demand for rental apartments has increased tremendously as San Diego’s population continues to grow.”