Thanks to a recent report by realtor.com, we know that Americans were spending more than a quarter (26.4%) of their monthly budgets on rent this summer.
This is not surprising considering that rents have increased at most metro areas nationwide in 2022, especially in the largest rental markets, including Miami, Los Angeles, and San Diego where rent has increased by 37.1%.
The Rental Market Is Still Challenging but There’s Reason to Hope
Yes, finding an affordable place to rent has been a major challenge for renters and it hasn’t gotten easier as lack of inventory, and short-term rentals, have squeezed many renters out of local rental markets and forced them to move.
Thankfully, help is on the way for San Diego renters since the city recently launched its own short-term rental law, limiting short-term rentals in San Diego to just 1% of the housing stock.
California renters can also thank rent control, which limits an owner’s ability to increase the rent to just 5% plus the cost of living.
Rent control in California only applies to apartment buildings built before 2007 so this means that there are a variety of other properties statewide where rent control doesn’t apply unless there is a local ordinance in place.
What Does The Future Hold For Renters?
With seasonal cooling in the rental market projected for the next 90 days, most economists feel that renters will be able to keep their rents manageable in the months ahead but there is still a concern for what 2023 holds as most owners are eager to increase rents to recover financially after the Pandemic.
Recent studies have shown that landlords saw their revenue decrease by 50% or more between 2019-2020, and smaller ‘ mom-and-pop landlords were severely hit during the Pandemic and continue to struggle with collecting the back rent that their tenants owe.
Contact GoldenWest Management
At GoldenWest Management, we specialize in managing single-family and multifamily properties in San Diego, Phoenix, and Las Vegas.
Our team saves owners the time, money, and hassle of managing their properties themselves so they can enjoy passive income from their rentals.
To learn more about the property management services we can offer you, contact us today by calling (866) 545-5303 or click here to connect with us online.
