Apartment Construction Booms in San Diego Area

San Diego County apartment construction is continuing to boom--so much so that some new apartment developers are beginning to offer rental incentives, according to George Carlson of John Burnham & Co., San Diego.

“Rebates or discounts to attract new tenants are something we haven’t seen in San Diego in a long, long time,” he added. Burnham’s April figures show new apartment building permits totaled $37,221,870 for 1,070 new units, up 133% from the $15,978,734 valuation for 489 units in April, 1984.

For the first four months of 1985, new permit valuation is up 42% over the comparable period for 1984, he added, with valuation totals of $117,809,862 (3,558 units) compared to $83,054,495 (2,240 units) for 1984.

Carlson added that new apartment starts are running just under the 1,000 new units per month mark considered necessary affect San Diego’s current low vacancy rates, although “there are signs that renters are beginning to enjoy greater choices.”

Apartment unit sales also were up in April, with 2,258 units changing hands, a 26% gain over the 1,803 units in April, 1984, he said. For the first four months of this year, 7,487 units were transferred, a 9% increase over 6,841 units for the comparable 1984 period.

Condominium starts were down 52% in April to $15,598,675 (263 units) from the $32,400,576 (674 units) in April, 1984.