Rents Up in San Diego

Landlords are reaping the benefit of the housing slump, according a new report. The RealFacts research firm shows that apartment rental rates climbed to an average of $1,363 in the third quarter, up 5 percent from a year earlier and 1.26 percent over the previous quarter.

Chris Bates, a spokesman for Novato-based RealFacts, said the increase followed several years of very modest growth and was “just above average” among metropolitan areas in the West and Southwest.
Analysts said the underlying reason for accelerating rents is the weak housing market.

Instead of buying, a lot more people are renting. Some are hoping for prices to drop. Others have simply been priced out of the market.” Foreclosures have returned some homeowners to the rental market, while the recent credit crunch has prevented others from becoming homeowners.