It (the occupancy rate decline) was unusual. It was across the board. We had a 0.2 percent decrease a couple of quarters ago, but (statistically) that was zero. This (the 0.5 percent decline), I think, is statistically significant.
It's probably not one thing. There are probably a couple of small, different things that are conspiring to make San Diego the underachiever that it is right now.
We have to wait another quarter to see if it continues.
Though I hate to call it that, you have sort of a boring market in terms of price changes.
The fact that everything's increasing reflects the healthier economy.
The Bay Area is stabilizing as the economy is showing nice, steady growth -- unlike what was happening in the late 1990s.
If it's a seesaw, it's a little bit tilted in favor of renters. If the occupancy trend continues, then people aren't going to be putting rents up. Rents would at least stay stable and possibly decline.
It's an interesting contradiction, and it's happening everywhere.
The market is probably steadily, boringly, going to continue the way that it is.
Copyright © 2024 Electric Goat Media. All Rights Reserved.