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

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

The median rent for a 1- and 2-bedroom apartment in San Diego declined by 5.6% and 7.5%, respectively. The report found that there was about a 15% increase in active listings in San Diego over that timeframe, according to Crystal Chen from Zumper.

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

Of the top 20 most expensive rental markets, only New Haven, Conn., saw a sharper decline in 1-bedroom rents. Miami and New Haven both saw larger decreases in median rents for a 2-bedroom apartment. Most other cities in the top 20 with fewer new active listings didn’t see the same decline.

“I think if you track the city of San Diego over the last couple of years, we've shown a pretty significant increase in the number of new housing permits each year, we’re closing in on the 10,000 mark for the last two years,” Council President Pro Tem Kent Lee said. Lee chairs the city council’s Land Use and Housing Committee. He said one of the biggest ways the city has facilitated new housing is through the community plan updates, like the recent updates in Clairemont and the College area.

“When we have this big influx of housing supply, it means that as a renter, it's much more competitive,” Lee said. Defazio-Farell said that makes it more difficult for landlords or owners to charge higher prices. “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, right?” Defazio-Farell said. “So it gives you a certain degree of negotiating power that you wouldn't otherwise necessarily have.”

KPBS reported last year that rents in San Diego increase slower where lots of homes are permitted; the Zumper report continues to indicate that adding to the supply of available homes on the market helps keep rents from increasing, and can even contribute to decreases. “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 said in a social media post that the city’s pro-housing policies are working. “When we #BuildMoreHomes, we expand opportunity, ease pressure on costs, and help prevent homelessness,” the post read. “We are not slowing down.”

Nationally, median 1-bedroom rents were down 1.4% and 2-bedroom rents were down 1.3% since last year. San Diego sits at the 11th most expensive rental market in the nation, according to the report, with the median rent for a 1-bedroom at $2,200. Median rent for 2-bedroom apartments is $2,950. “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,” Lee said.