The cost of living in San Diego will reportedly be increasing in the incoming years.
According to a USC Casden Economics Forecast this week, it is projected that rent within San Diego County will become even more expensive than it is currently.
By October 2024, the rent in San Diego is projected to see an increase of $250, which would officially surpass state neighbors, Los Angeles County and Orange County, who are expected to see an increase of $100 and $184 within the same time-frame.
The same forecast confirmed that at this moment in time, San Diego County has an average rent cost of $2,334, with a 2.9% vacancy rate. And by late 2024, it will increase to $2,582, with a 3.44% vacancy rate.
Richard Green, director of the Lusk Center, told local NBC that the newly increased interest rates by the federal government could have an impact on new housing construction in the future, which is a reason why rental market prices continue to increase.
"The Fed has increased interest rates at a frequency not seen since the end of the Reagan administration," Green said in a statement. "While it might slow inflation, rapid rate hikes could have a different impact on housing in Southern California. High interest can be a barrier to new housing construction or a renter's decision to become a homeowner. Both add stress to the rental market and drive up prices."
Many locals have decided to leave in previous years due to the increase in rent, though the forecast displays that vacancy rates are still decreasing over time.
"With low unemployment [3.2%] and incomes above the national average, most outmigration is among those with lower incomes," the report states. "The forecast suggests that these vacancies were absorbed by households owning more than one residence. Regardless, the forecast predicts increases in both rent and vacancies over the next two years."
