San Diego rents declined more than 19 of 20 top US markets after surge in supply

Source: Hacker News

Overview

San Diego rents have declined since this time last year, according to a new report by Zumper, a rental platform that tracks rental data nationwide.

Rent Decline Data

• Median rent for a 1‑bedroom apartment fell 5.6%.
• Median rent for a 2‑bedroom apartment fell 7.5%.

Supply Increase

The report found about a 15% increase in active listings in San Diego over the same period, according to Crystal Chen from Zumper.

“Generally speaking, the more supply there is, the less the prices will continue to increase,” said Zack Defazio‑Farell of the housing advocacy group YIMBY Democrats of San Diego. “And they may go down as we’re starting to see here. So yeah. Shouldn’t be too surprised by this.”

City Actions

Council President Pro Tem Kent Lee highlighted the city’s effort to boost housing permits, approaching the 10,000 mark for the last two years. He noted that updates to community plans—such as the recent revisions in the Clairemont and College area—have helped facilitate new housing.

“When we have this big influx of housing supply, it means that as a renter, it’s much more competitive,” Lee said.

Defazio‑Farell added that increased supply gives renters more negotiating power:

“If you are someone who’s in the market looking for a rental, right, looking for a new apartment, when you have more options, it allows you to be more selective… it gives you a certain degree of negotiating power that you wouldn’t otherwise necessarily have.”

Context from KPBS and Zumper

KPBS reported last year that rents in San Diego increase slower where many homes are permitted. The Zumper report reinforces this, stating that adding supply helps keep rents from rising and can even cause declines.

“Peak deliveries are now arriving after peak demand, pushing inventory higher and intensifying competition among property owners,” the Zumper report said. “As a result, many markets are seeing downward pressure on rents, increased concessions, and more choice for renters.”

Mayor Todd Gloria echoed the sentiment in a social‑media post:

“When we #BuildMoreHomes, we expand opportunity, ease pressure on costs, and help prevent homelessness. We are not slowing down.”

National Comparison

• Median 1‑bedroom rents nationwide are down 1.4%.
• Median 2‑bedroom rents nationwide are down 1.3%.

There was a small increase in the past month, according to Zumper data.

San Diego’s Ranking

• San Diego ranks 11th most expensive rental market in the nation.
• Median rent for a 1‑bedroom: $2,200.
• Median rent for a 2‑bedroom: $2,950.

Outlook

Lee concluded:

“I think anytime we see that rents are dropping in what is one of the most expensive places in the country to live, it’s obviously a very positive result. It tells us that some of what we have been doing at the city is actually working… It means that we actually have a lot more work to do.”