House prices and rent rates will continue to rise, but they won’t accelerate as fast as they have been.
The Los Angeles Times reports that average home prices will increase by 5 percent in 2017 and 4 percent in 2018. Prices increased 5.8 percent in 2015 and 5.1 percent this year.
As for rentals, prices increased 4.5 percent in 2015 and 3.5 percent for 2016, but are expected to slow to 3 percent in 2017 and 2.9 percent in 2018. All data comes from a report of 51 economists and analysts in the Urban Land Institute’s Real Estate Consensus Forecast.
The L.A. Times localized the data and said that housing prices in San Diego will not increase as much as in years past, but that prices won’t be as low as the rest of the U.S.
“As long as we’re creating new jobs but not creating much new housing supply, particularly apartments, we’re just going to see increases in pricing of housing,” Greg Shannon, chair of the management committee for ULI’s San Diego and Tijuana branch, said. “San Diego is likely to have increases greater than the U.S. average across the board, particularly in rentals.”