As local property managers in Del Mar and throughout the San Diego area, we have seen a lot of trends in the sales and the rental markets. The real estate market is always changing, and with everything that’s going on right now, it’s hard to say where we’ll be as buyers, sellers, investors, and owners at the end of the year.
San Diego investors can feel pretty comfortable with their investments and the potential of their rental properties, however, because this is a stable market that has weathered recessions and downturns before. It’s one of the reasons investors like the greater San Diego area so much.
San Diego Has a Strong Economy
One excellent reason to invest in the San Diego market is the strength of the local economy. As California’s second largest city, this market has opportunities for growth and a stable foundation. Our employment rate has remained high, even during periods of national economic instability, and our military bases have sustained the local economy.
Military personnel from the Navy and Marines especially are coming into the area on a regular basis, and data on the local economy is continuing to outpace nearly every national average. Investors know that when they buy property in Del Mar and the San Diego area, they will have access to a financially secure tenant pool.
Diversity in Del Mar and the San Diego Real Estate Market
There’s an abundance of residential single-family homes and multi-family properties. There’s new construction and established neighborhoods. There’s even plenty of commercial real estate.
You can find nearly every type of real estate investment in San Diego. Investors can take the time to diversify their real estate portfolios or add an asset that cannot be found in other markets. Whether you’re looking for residential or commercial real estate, you’ll be able to find something that fits your investment goals. We rent out vacation homes on a temporary basis and long-term properties for tenants who expect to stay in place for years.
Strong Pool of San Diego Tenants
Landlords are quick to invest in Del Mar and other local San Diego communities because of the tenants. There are a lot of military families looking for housing, and there’s also a heavy population of tenants who work in the healthcare and tech fields. There are students and academics.
Investors have access to a pool of tenants with stable financial histories and a good track record of maintaining rental homes. Demographically, San Diego is at an advantage. It’s one of the most desirable retirement destinations in the country, and a lot of people in that age group are choosing to rent or downsize. They enjoy the flexibility and the low-maintenance that comes with a rental lifestyle. This gives investors and landlords a lot of opportunity in terms of tenant access.
Rental Rates Have Been High
There may be some concern statewide about the rent control that’s in place, but we don’t know a lot of landlords who plan to raise the rent on their good tenants more than seven or eight percent a year anyway. We’re also confident that the rental market will be stable, even with the global economy shifting in response to the latest pandemic.
Investing in real estate brings you a number of financial and tax benefits. When you’re looking for a great place to buy your next investment property, consider contacting us. Harcourts Avanti is a full-service property management company that manages long term as well as vacation rentals in Del Mar, Encinitas, Carlsbad, Cardiff, Carmel Valley, Solana Beach, and the surrounding San Diego areas.