Residential construction in downtown San Diego is looking up for the first time in years. The Centre City Development Corp., figures that 2,710 new apartments and condos could be built over the next four years if all plans are actualized. This large expansion is fueled by the downtown community plan’s anticipation of a 200% growth in downtown population over the next 20 years. If correct, this would mean that the current downtown population would grow from 30,000 to 90,000. Eric Kenney, development partner at Hanover Co in Scottsdale, AZ, explains “There are certain cities where the apartment market is coming back more rapidly. San Diego is one of those markets.”
All told, eleven projects are expected to begin construction in the next 18 to 24 months, thereby ending a three-year new supply drought. Some of the larger projects expected to start in the next 18 to 24 months include:
- 965 apartments/condos at 15th & Island (Pinnacle International)
- 285 condos at Kettner and Ash (Bosa Development)
- 263 apartments at 14th and Market (Hanover)
Many of these units may end up on the market as rentals before being sold. The rental market is expected to lead the home-buying market in recovery. Gary Painter, director of research at 's University of Southern CaliforniaLusk Center for Real Estate, states “It’s going to be a couple of years before people start buying homes again. We’re not going to see a quick recovery in the owner-occupied market.” He continues, “The recovery will start with people re-entering the rental market as they get jobs. Then rents will go up, likely at the end of the year. Once that happens, the housing market should begin to recover.”
*Showley, Roger, Downtown poised for a housing revival, San Diego Union Tribune, June 2, 2011
