Rental Market in San Diego Seen Softening

The rental market is expected to begin experiencing softness by late this year, according to a recent study of the north San Diego County apartment market by the Durkin Co., a Santa Monica-based market research and marketing firm.

The study, which audited 1,650 existing units, showed a 6% vacancy factor, with average rents of $450 for a single unit, $536 for a one-bedroom unit and $629 for a two-bedroom unit on an unfurnished monthly basis.

Phyllis Durkin, president of Durkin Co., said the market has changed significantly since a year ago when the San Diego market showed a minimal vacancy factor, pent-up demand and not much in the planning stages. She said now there are at least 3,978 units in 16 complexes either under construction or in the planning stages.

Most are two-bedroom units where she anticipates the greatest competition for tenants will be.