New homes in downtown San Diego. Photo by Chris Stone

Have you ever wondered why rental costs in the region have become so high? Well, the apartment rental website Rent Cafe provides some insight in answering this question.

According to a recent study by the website, “rising home prices and a preference for flexibility have led to a wave of high earners” nationwide competing in the rental market over the past half decade.

According to the latest analysis, more than 2.6 million Americans with incomes of $150,000 and above are choosing to rent homes over buying.

Here in California, that group has exploded by 136% in the last five years.

But what is the fallout for San Diego? Renters making $150,000 or more annually now make up 12.4% of San Diego renters. That’s a significant number.

According to the study, the number of well-heeled renters in San Diego has doubled to 33,500 since 2018.

And it’s pretty obvious that this demand for luxury living is one of the reasons so many luxury homes are coming onto the market.

During the same period, home prices rose 36% — less than state sister cities like San Jose, which saw increases of over 50% — but still well above the national average of 29%.

Some other results: San Diego ranked #7 on a list of the top 20 high-income renter places.

San Francisco ranked #1 with more than 80,000 residential units occupied by well-paid tenants. Last on the list was San Antonio, Texas, with less than 3% of units occupied by people making $150,000 or more.

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Hungry for something new while eating out? Here are a few dining tidbits.

A new franchise from The great Greek Mediterranean grilll has opened in the Kearney Mesa neighborhood – the chain’s first franchise location in California.

According to a press release, the new grill owner is there Manic Sharma“an avid traveler with over two decades of management experience and a background in the food and retail industry.”

Meanwhile a new restaurant the sushi stand, opens at Point Loma’s Liberty Public Market. According to a publicist, it will be the only sushi restaurant in the market.

The restaurant was created by the owners of the SoCal chain The perfect ParisPlus guillaume And Ludivine Ryon.

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Fortune 500 News: Fortune Magazine has named a local energy supplier always as one of its “World’s Most Admired Companies for 2023”.

According to a press release from Sempra, the company has now made the prestigious list 13 times.

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Local non-profit organization Wounded warrior homes has reopened his home in Vista for wounded warriors. The home is home to four veterans with post-traumatic stress and traumatic brain injuries.

According to a publicist for the group, veterans can stay in the home for up to two years, depending on their needs, while also receiving support such as counseling and rehabilitation services.

The reopening of the home brings the total number of Veterans housed in Wounded Warrior Homes to 14 at a time.

The house needed repairs and modernization, including from local sponsors tuft, ServPro from North Vista and San Marcos, Collins Pacific Plumbing And Come on HotMop.

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Political Action Group San Diego County Gun Ownerswho champions 2nd Amendment rights Gail Rower a former associate of two Sacramento legislatures for 12 years as the new executive director.

Michael Blackthe founder of SDCGO, announced this.

“We live under the most anti-gun government in our country’s history,” Ramer said. “Activism is more important now than ever.”

Ramer was on the staff of the former congressman and current state senator brian jonesand later MP Randy Voepel.

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Based in San Diego Mulligan Funding, which claims to be one of the nation’s largest providers of access to working capital for small and medium-sized businesses, has completed a $100 million asset-backed securitization.

According to a publicist, this new financing continues the company’s story of impressive growth, even in difficult market conditions.

As the first securitization by Mulligan Funding, the Senior Bonds received an A rating of Kroll Bond rating agencythe highest rating they give to a first-time issuer in this asset class, she said.

The facility has a revolving term of 3 years and is expandable to US$500 million.

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The Chamber of Commerce Karlovy Vary celebrates its 100th anniversary in 2023 and has planned a number of activities throughout the year to celebrate the achievement, according to a press release.

Since the chamber was founded 30 years before Carlsbad and the county government was 35 miles away in San Diego, the organization became the voice of the community and remains a powerful influence on business today.

President and CEO Bret Schanzenbach said the chamber will host a community block party on Aug. 18. “To thank the community, along with a red carpet gala on October 13 to raise money for our foundation.”

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Planet Based Foods Global said it will use its dairy-free cheese alternative for its Southwest Style Taquitos and Original with Cheese Taquitos.

The Canada-based public company said the inclusion of these products “reflects their efforts to create more sustainable and ethical food systems without compromising on the most important factor, taste.”

According to a press release, the company’s subsidiary, Planet Based Foods, was formed in San Diego in 2018 to develop a system that would provide “hemp-formulated superfood products today that support the planet tomorrow.”

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Detection of fentanyl in urine drug test samples remains near historic highs, and concomitant detection of fentanyl in people who use heroin, prescription opioids, methamphetamine or cocaine has reached new heights, according to a report from the San Diego Testing Laboratory Millennium Health this week.

According to the company, between 2019 and 2022, drug tests positive for fentanyl increased 146% nationwide and in nearly all U.S. census departments, particularly in the Pacific and Mountain regions, where positive fentanyl tests increased 875%.

More than 83% of the fentanyl-positive specimens also contained additional drugs; about 30% were positive for another drug, over 43% were positive for 2-3 other drugs, and nearly 10% were positive for 4 or more other drugs.

Tom York is a Carlsbad-based independent journalist specializing in writing about business and economics. If you have any news tips you’d like to share, send them to tom.york@gmail.com.

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The distortions caused by the shift to work from everywhere hit households that can least afford it.

By Wolf Richter for WOLF STREET.

For months we have seen the data how the big shifts due to the pandemic have affected property markets across the country. In terms of rents, tenants have left large, expensive places like San Francisco, Silicon Valley, Boston, or Manhattan, leaving high vacancy rates, falling rents, and a massive churn in stayers seeking this free upgrade to a nicer apartment as the landlords try to keep their units filled.

And we saw in the data that this outflow, conversely, has resulted in large inflows in destinations, usually less expensive markets, and driven up rents in those markets.

This shift has a troubling component, however. Rents are falling in places with some of the highest household incomes and they are rising in places with much lower household incomes, shifting the affordability crisis from housing to people who can least afford it – in a matter of months.

The following table lists the 16 districts (of the 100 largest districts) whose rents fell between 10% and 24% year-on-year in February. It also shows the median 1-BR asking rent and median household income, based on a new study by Zumper of the affordability issues that caused the shifts.

To point out that nothing is universal, there’s also one county on the list with a sharp year-over-year rent decline and one of the lowest rents and household incomes in the U.S. ($ 41,800): Hidalgo County, Texas.

When it comes to median household income, San Francisco ($ 124,000) and Silicon Valley Counties of Santa Clara ($ 133,000) and San Mateo ($ 138,000) top the list, and they also top the list for rental declines . For these lagged folks, renting has become, so to speak, a lot less unaffordable. (If your smartphone cuts off the sixth column on the right, hold your device in landscape orientation).

And most of the 16 boroughs that recorded rental income between + 10% and + 22% year-on-year have a relatively modest median household income compared to the wealthiest boroughs. The 22% increase in rents is particularly impressive in Detroit and Indianapolis, where median household incomes are on the lower end of the spectrum, and this will hurt.

There is another element here. Some of the counties on this list are geographically located near very expensive, high-household income housing markets, such as Counties of Kern and San Bernardino in the urban areas of Los Angeles and San Diego. or Sacramento and Fresno counties to the San Francisco Bay Area, indicating that people are moving to cheaper cities just a few hours’ drive from their former location.

Given the large population like New York City, Los Angeles, or the Bay Area, they can easily skew rents in smaller, less expensive markets. And as rents go down in expensive cities and go up in cheaper cities, the difference between the two collapses where at some point it’s no longer worth moving.

The graph shows the difference between the 50% decrease in 1-BR rents in San Francisco and Sacramento and the 1-BR rents in San Francisco and Fresno, which fell 46%:

What has essentially taken place is a shift in tenants from the wealthiest to the less affluent districts, and once that shift has picked up, rents have increased in the receiving districts.

Some of these people who had moved kept their jobs but moved to work from everywhere. and they brought their high household incomes with them and they are used to the much higher rents in their expensive markets and they offer the rents and still think they are getting a deal.

At the receiving end of these shifts, however, are tenants with relatively modest household incomes who are now competing with an influx of high-income tenants, and they are now facing massive and unaffordable rent increases.

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