Thom Yorke on business: Falling rents are a plus amid slowdown in the economy | Update News

San Diego real estate market
A rental sign near the North Park residential complex. Staff photo

Well, the general slowdown in the economy is a ray of hope for potential tenants against the backdrop of gray clouds.

Residential real estate website Zillow A recent analysis of the data showed that typical rents in San Diego were down slightly this fall compared to the previous month.

To be sure, typical rents are up almost 13% year-over-year, to $3,105 in October, which puts us third in the nation for annual increases, Zillow found.

There is a nationwide downward trend in rents, with typical prices falling by 0.1% per month. This is the first monthly decline in 2 years.

Typical U.S. rent in October was $2,040, up 10% from 2021.

“According to our economists, the small move down is reminiscent of a more ‘normal’ rental market in line with the October decline seen in each of the three pre-pandemic fall periods,” a Zillow spokeswoman said.

According to the company, rents have declined in all but nine of the 50 largest U.S. metropolitan areas, including luxury markets like Boston and Miami and more affordable Midwestern metropolitan areas like Cleveland and St. Louis.

California cities boast the most expensive major markets such as San Jose, where typical monthly rent is $3,341, San Francisco $3,199, San Diego $3,105 and Los Angeles $2,979.

Miami and New York showed the highest growth compared to last year.

Rent growth has eased after peaking at 17.2% year-on-year in February 2022.

Zillow found that Americans’ demand for housing has declined this year after booming in 2021 due to higher rents and generally high inflation.

The analysis showed that more tenants are teaming up with roommates or family, raising rent levels and putting some pressure on landlords to hold back rent increases.

This slower rate of rent growth is likely to show up in official rent inflation figures in early 2023.

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Zillow also considered the impact of rising rents on tenants.

A San Diego tenant must work 85.5 hours each month before earning enough to pay the region’s typical $3,110 rent, a new Zillow analysis shows, according to the company. This is compared to the 74 working hours required five years ago.

Last year, rents rose faster than ever, resulting in budget cuts when the lease expired and it was time for an extension.

The rental market is cooling now, a Zillow spokesman says, but the rent cuts haven’t dropped enough to hit the wallet hard.

While rents have risen, wages have not kept pace with inflation, a spokesman said. Rents in the San Diego metro have increased by 46.9% over the past five years. The average salary increased by only 27%.

“Searching for a home in this market is stressful – 40% of renters lose sleep while searching. Strategies such as move-in flexibility and the ability to be one of the first applicants have helped recent tenants find housing,” he said.

Americans on the median wage must work 62.6 hours to pay a typical monthly rent in the US.

Over the past five years, rents have risen by 36.9%, while average wages have risen by only 23%.

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Stone Distributor Co. said he would distribute beer produced Coronado Brewing Company. in Southern California and will represent a large sample of Southern California.

Coronado Brewing says its sales are currently up 20% year-to-date.

Stone distributionFounded in the late 1990s, it is now one of the largest independent craft drink distributors in the country.

The distributor became an independent enterprise, separated from Escondido. stone brewing Earlier this year.

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Sacramento pizza supplier and franchisor Pizza Guys – opens its first store in San Diego on Pacific Beach.

The store was located in 1975. pomegranate avenue, and will be run by a local entrepreneur Behzad Kazemiaccording to the press release.

The chain said it hopes to open more outlets in the area in the future.

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The Diamond Princess cruise ship with 2,670 passengers has set sail from its new home in San Diego. The porting of the ship here highlights a group of new flights from the operator. Princess Cruiseslasting from 5 to 16 days with excursions along the Mexican Riviera, the coast of California and the Hawaiian Islands.

According to the news report, the schedule also includes a unique 20-night round-trip cruise to Central America on November 27th. The cruise line is part of the state Company Carnival.

San Diego is the third busiest cruise port in California after Los Angeles and San Francisco and served 93 ships before the COVID pandemic hit in 2020.

Port officials expect the terminal, which can handle three ships at a time, to reopen this year, with more than 90 cruise ships docking at the city’s two terminals during the high season.

Princess Cruises operates a total of 15 ships in various global markets.

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Kearny Mesa Subaru will spend the holidays with its annual “Share the Love” food truck event that will benefit a local non-profit organization. Food on Wheels San Diego County.

This event is open to the public and attracts some of the best food trucks in San Diego to support local nonprofits, including Meals on Wheels.

Trucks will compete for the title of “Best Meal” and local celebrity judges will vote for the best food truck.

Go to sandiegomealsonwheels.org for more information.

Over the past 14 years, Subaru of America and its dealers have donated over $227 million to more than 1,700 hometown charities across the country.

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And finally, back to the news related to residential real estate.

Investor home purchases fell 30.2% year-on-year across the country in the third quarter, according to a new report from the residential property sales and rentals website. rudd.

The report says that this is the biggest decline since the Great Recession, except for the second quarter of 2020, when investor activity fell sharply due to the start of the pandemic.

And that outpaced a 27.4% drop in total home purchases across the country.

According to the report, many of the cities where investor purchases have declined are regions that have skyrocketed in popularity during the pandemic.

These regions included San Diego, as well as Phoenix, Las Vegas, Sacramento, and Miami, all of which consistently feature on Redfin’s top migration destinations list.

Investor purchases here in October fell nearly 35% compared to October 2021.

Thom Yorke is a freelance journalist based in Carlsbad who specializes in business and economics writing. If you have news tips you’d like to share, please send them to [email protected]


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