It’s impossible not to notice a change in the quality of rentals while looking through the San Diego County rental market. Whereas the general rule of thumb follows the dictum of Adam Smith – that given the choice people will seek the lowest possible prices in all things – the truth is that there is a rising demand for luxury apartments and even a market blooming for them through the county.
Some new luxury apartments are offering the very best in amenities to those willing to pay a high price for rent – how high? Upwards of $3,000/mo. What amenities are bought with a $36,000/yr. lease? Fully outfitted gyms, spas, golf simulators, private bowling alleys, located downtown in popular urban areas, close to public transportation, retail locations, and near popular night venues, including clubs, restaurants, and high-class bars.
And while this may seem nice on paper, there are compelling stats that point that people are willing to pay these prices for access to the exclusivity and proximity to high value locations. In fact, according to a San Diego Union-Tribune poll:
- 20% have never paid over $1,000/mo.
- 30% have paid between $1,000 and $1,500/mo.
- 22% have paid $1,500 to $2,000/mo.
- 18% have paid between $2,000 and $3,000/mo.
- 8% have paid more than $3,000/mo.
The other important aspect of these high-quality, expensive, and exclusive apartments is that fact that there are too many in the area yet. This is important for our clients and real estate investors that are looking for new ways to expand their existing portfolio while having a solid return on their investment. The biggest hurdle to starting in this exclusive market is to stake the investment and being the venture. But remember that the demand is there, and it is growing throughout all of San Diego County.
For the non-luxury apartment and real estate owner this means that there are high quality and financially stable renters and leasers looking for a great place to live. Ensuring that buildings and property are in the best condition is the surest way to fill vacancies and bring about better tenants that will respect the property and pay their rent and utilities on time.