(Gross Yields from 7.41%, $195 Average Daily Rate)
Quick Facts
Population – City – 1,307,402 (2020), Metro – 3,095,313 according to US Census Bureau
- MacroTrends states that San Diego is currently growing at a rate of 0.7% annually since 2021. As a benchmark, FreddieMac states that US cities grow at an average of 0.3%.
- Famous for its sunny weather and impressive beaches
Cost of Living: Payscale ranks the cost of living in San Diego to be 44% higher than the national average. San Diego also has 136% higher housing expenses than the national average.
Active Rentals
There are 3983 active rentals in San Diego. Almost 68% of all listings are 1 and 2-bedrooms.
Larger homes catering to bigger parties and families are potentially undersupplied. There are only 539 active 4 & 5-bedroom homes.
Average Daily Rate (Nightly Price)
The Average Daily Rate for rentals in San Diego is $199 dollars.
Throughout the year, the rate fluctuates by $24 from that average with the highest Average Daily in June ($223) and the lowest in February ($181).
Occupancy Rate
Occupancy Rates in San Diego, California are the highest in the summer. The Occupancy Rate at an annual level is 61%.
The lowest occupancy rate was in December (43%) and the highest was in June (83%). Drop-in occupancy rates in January and December of 2021 can be partially explained by a surge in COVID cases.
High-Performance Properties
Chalet’s research shows that 2 bedroom homes have the highest percentage of homes in high yield territory (0.68%) therefore could be a good strategy for this market. Studios do not have enough samples to be considered (no active listings).
Chalet considers properties with a gross yield greater than 15% as high yield properties. Gross yield equals Gross Income/Purchase Price
Demand
The majority of the San Diego short-term rental guests are domestic guests from the United States, though January is when the presence of international guests is most noticeable. However, international guests in February barely crossed the 1% threshold of total guests.
The majority of San Diego guests come from U.S. cities located within driving distance. Almost 25% of all guests in San Diego are from San Diego. We expect drive-to locations/cities to continue to do well in the post-covid world.
Other Facts
San Diego County has an effective property tax rate of 0.73%. That’s slightly lower than the 1.07% national average. Source: SmartAsset.
According to Zillow, homes in San Diego appreciated 26.2% year-over-year (YoY) and the median home price for active listings was $944,228 (as of March 2022).
Homes in San Diego average just 8 days on the market according to Redfin.
The BLS reported that the unemployment rate in San Diego County fell to 4.7% in January of 2022, which is higher than the national average of 3.8%.
Short-Term Rental Regulation
See Chalet’s detailed analysis of short-term rental regulation in San Diego county.
