{"id":504993,"date":"2024-08-05T15:26:02","date_gmt":"2024-08-05T19:26:02","guid":{"rendered":"https:\/\/www.rent.com\/research\/?p=504993"},"modified":"2024-08-05T16:10:31","modified_gmt":"2024-08-05T20:10:31","slug":"san-diego-ca-rentership-rates","status":"publish","type":"post","link":"https:\/\/www.rent.com\/research\/san-diego-ca-rentership-rates\/","title":{"rendered":"San Diego Has One of the Highest Rentership Rates in the U.S. \u2013 Here’s Why"},"content":{"rendered":"\n

Over 50% of residents in San Diego are renters \u2013 among the highest shares in the nation.<\/h3>\n\n\n\n

San Diego, CA, is a booming, laid-back coastal city known for its beautiful beaches, mild climate, and iconic cuisine. Residents can enjoy parks like Balboa Park, home to the San Diego Zoo and several museums, and Torrey Pines State Reserve, which offers scenic hiking trails and ocean views. Other notable landmarks include the historic USS Midway Museum, the Gaslamp Quarter, and the iconic Hotel del Coronado on Coronado Island. Throughout the city, there are plenty of opportunities for surfing, sailing, and exploring its winding streets. <\/p>\n\n\n\n

People love living in America\u2019s Finest City. Unfortunately, it\u2019s becoming increasingly expensive<\/a>. <\/p>\n\n\n\n

But what\u2019s happening with the rental market? And why do so many San Diego residents rent their home? Read on to learn everything you need to know. <\/p>\n\n\n\n

52% of San Diego residents are renters; 48% are homeowners<\/h2>\n\n\n\n

52.4% of San Diego residents rent their home \u2013 the second-highest share in the country. 47.6% of residents own their home. <\/p>\n\n\n\n

A major reason for the high rentership rate is likely the housing market. House prices have been consistently rising across the country, and have been especially unaffordable in coastal metros like Los Angeles and San Diego. The median sale price<\/a> for a home in San Diego<\/a> is $1,020,000, far above the national median of $442,000. In fact, house prices in San Diego have risen $385,000 since 2019<\/strong>, and the city led the nation<\/a> in monthly median sale price increases for six months until July. <\/p>\n\n\n\n

These high prices mean ownership is out of reach<\/a> for many buyers, pushing them into renting. However, rentals don\u2019t offer much reprieve. In June, rent prices were at $2,730, over $1,000 more than the national average. <\/p>\n\n\n\n

Paired with high costs<\/a> for everyday items, the unaffordable cost of living has led some people to look to more affordable places to live. In 2023, San Diego saw 30,000 more people leave than move in<\/a>, bucking nationwide trends. Those who left in search of better deals often took their budgets<\/a> to states like Texas and Florida, boosting prices throughout cities in the south. <\/p>\n\n\n\n

San Diego is following suit with other large coastal metros, like New York and San Francisco, both of which have seen price spikes<\/a> and subsequent population drops<\/a> during and following the pandemic. <\/p>\n\n\n\n

What\u2019s happening with nationwide rentership rates? <\/h2>\n\n\n\n

Nationwide, the rentership rate rose 1.9% year over year to 34.4% in the second quarter of 2024, meaning over one-third of Americans are renters. In contrast, homeownership saw a modest 0.6% increase, but remains much more common at 65.6%.<\/p>\n\n\n\n

This is the third-straight quarter that rentership outpaced homeownership. The last time this happened was in 2022, when mortgage rates rose to the highest level since 2008<\/a>. Rentership consistently outpaced homeownership from 2006-2017, as well. <\/p>\n\n\n\n

Why are more people renting?<\/h2>\n\n\n\n

Rentership rates vary widely throughout the country and are generally correlated to house prices \u2013 the more expensive houses are, the more people will be pushed into renting. <\/p>\n\n\n\n

One reason for the increase in rentership is because homeownership is historically unaffordable<\/a> and showing little sign<\/a> of improving. Sale prices are also growing much faster than rents: 4% year over year compared to 0.7%. Nearly two in five<\/a> renters don\u2019t think they\u2019ll ever own a home.<\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

Another reason is because rental supply has more or less kept up<\/a> with increasing demand. New apartment construction skyrocketed to record levels during the pandemic and has only now started to slow<\/a>, helping keep rent price growth low<\/a>. <\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

The U.S. has also been adding more renter households than homeowner households since 2022. The number of renter households grew at the second-fastest pace since 2015, while the number of homeowner households grew at the slowest pace since 2022.<\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

Which U.S. metros have the highest share of renters? <\/h2>\n\n\n\n

Rentership rates are the highest in expensive coastal metros like Los Angeles (53%) and San Diego (52%), where house prices regularly surpass<\/a> $1 million. Prices are also tied to available rental supply.<\/p>\n\n\n\n

Metros with the highest share of renters<\/h3>\n\n\n\n
Metro<\/strong><\/td>Rentership rate<\/strong><\/td>Homeownership rate<\/strong><\/td><\/tr>
Los Angeles, CA<\/a><\/td>53.0%<\/td>47.0%<\/td><\/tr>
San Diego, CA<\/a><\/td>52.4%<\/td>47.6%<\/td><\/tr>
New York, NY<\/a><\/td>50.1%<\/td>49.9%<\/td><\/tr>
Fresno, CA<\/a><\/td>49.0%<\/td>51.0%<\/td><\/tr>
Austin, TX<\/a><\/td>46.3%<\/td>53.7%<\/td><\/tr>
San Jose, CA<\/a><\/td>44.8%<\/td>55.2%<\/td><\/tr>
Honolulu, HI<\/a><\/td>42.5%<\/td>57.5%<\/td><\/tr>
San Francisco, CA<\/a><\/td>41.8%<\/td>58.2%<\/td><\/tr>
Las Vegas, CA<\/a><\/td>41.6%<\/td>58.4%<\/td><\/tr>
San Antonio, TX<\/a><\/td>40.9%<\/td>59.1%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Which U.S. metros have the lowest share of renters?<\/h2>\n\n\n\n

In particularly affordable metros, like Worcester, MA (23%) and North Port, FL (23%), rentership rates are the lowest. A lack of rental inventory and zoning restrictions<\/a> could also play a role.<\/p>\n\n\n\n

Metros with the lowest share of renters<\/h3>\n\n\n\n
Metro<\/strong><\/td>Rentership rate<\/strong><\/td>Homeownership rate<\/strong><\/td><\/tr>
Worcester, MA<\/a><\/td>23.2%<\/td>76.8%<\/td><\/tr>
North Port, FL<\/a><\/td>23.3%<\/td>76.7%<\/td><\/tr>
Albany, NY<\/a><\/td>25.6%<\/td>74.4%<\/td><\/tr>
Rochester, NY<\/a><\/td>25.7%<\/td>74.3%<\/td><\/tr>
Syracuse, NY<\/a><\/td>26.2%<\/td>73.8%<\/td><\/tr>
Cape Coral, FL<\/a><\/td>26.3%<\/td>73.7%<\/td><\/tr>
Cincinnati, OH<\/a><\/td>26.8%<\/td>73.2%<\/td><\/tr>
Hartford, CT<\/a><\/td>27.2%<\/td>72.8%<\/td><\/tr>
Richmond, VA<\/a><\/td>27.7%<\/td>72.3%<\/td><\/tr>
Albuquerque, NM<\/a><\/td>27.7%<\/td>72.3%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Methodology<\/h2>\n\n\n\n

Based on a Redfin analysis<\/a> of U.S. Census Bureau data for the 75 largest U.S. metros. A renter household is defined as one where the head of the household reports to the Census that they are renting out the property. A homeowner household is one where the head of household reports they own the property.<\/p>\n","protected":false},"excerpt":{"rendered":"

Rentership rates are rising nationwide, as housing continues to be unaffordable. San Diego has one of the highest renter populations: 50% of people are renters. What\u2019s behind this? <\/p>\n","protected":false},"author":1022,"featured_media":504994,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[250,19835,19832,19828],"tags":[],"topics":[202],"renters":[],"cities":[],"propertymanagement":[],"class_list":["post-504993","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-industry-trends","category-renting-trends","category-research","topics-news-trends"],"acf":[],"yoast_head":"\nOver Half of Residents in San Diego are Renters: Why? | Rent. Research<\/title>\n<meta name=\"description\" content=\"Rentership rates are rising nationwide, as housing continues to be unaffordable. In San Diego, 52% of people are renters. 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