Apartment Occupancy Levels Hold Steady

SAN DIEGO, CA-San Diego County continues to hold its own as one of the hottest multifamily markets in the state, if not the entire country, as recent research points out that the average occupancy rate for apartment product here remained at 96% in the third quarter of 2002.

The report, which was published by multifamily research provider RealFacts, also points out that the average occupancy level here has not dropped below 95% in the past two years. Such low vacancy rates continue to attract investment dollars, as the RealFacts’ researchers say “institutional investors, who have turned away from many areas where rents are declining and occupancy rates are in the low 90s, turn to the San Diego market as a safe haven for their capital.”

In addition, rents continue to increase across the region, although the average monthly rent in September 2002 of $1137 was just $10 more than in June of this year, when the average rent was recorded as $1127. However, the RealFacts report does point out that “September rent levels were the highest yet recorded in this market,” putting the yearlong increase at a “respectable 5.9%.”