DOWNTOWN - San Diego has the fourth highest percentage of renter households at 48%, according to national real estate company Redfin.
The rate of renters also rose three times faster than the rate of homeowners nationwide in July.
For John Tonkinson, he relates to both groups of people.
Thursday, he went to the dog park with his furry companion. He said it's a perk of living in Bankers Hill.
"It’s November 7th, and I’m in shorts going to the dog park with my dog," said John. "I think there’s a quality of life here."
He rents an apartment in Bankers Hill but also owns in North County.
"I wanted to keep my condominium in the North County just because it was a good investment," said John. "Property levels kept going up, property values kept rising, and so I wanted to hold onto that if I could."
Real estate experts, like Professor Jeremy Gabe with the University of San Diego, said the growing rate of renters makes sense.
He said there's 60% less inventory on the market compared to pre-COVID levels in San Diego.
Gabe said John's approach is smart.
"He’s benefiting from maybe a lower interest rate for the house that he’s renting out," said Gabe. "He’s also benefiting from lower property taxes than a home owner that would have bought the house he’s renting out would pay. So he’s able to accept a lower rent to keep his margins and yield lower."
But homeownership is getting harder for many, according to leaders like Rafael Bautista, the director of the San Diego Tenants United.
"People are faced with just barriers, such as high income guidelines for tenants to be able to apply and move into the units and the added costs that come every year," said Bautista.
John agrees.
"It’s driven up by the high price of home ownership in San Diego, which is very high, and for younger people, that can be a big obstacle," said John.
Gabe said when buying a home, you need to take into consideration several additional costs, including interest to borrow money, paying property tax, buying insurance, and the responsibility for maintaining the home.
Visit https://www.redfin.com/news/renter-household-growth-q3-2024/ for the complete study breakdown.
