Renter percentages in Rancho San Diego have remained relatively stable, with a slight decrease from 34% in 2015 to 31% in 2022. During this same period, average rent prices saw a consistent upward trend. In 2015, the average rent was $1,632, which increased to $1,886 by 2022, representing a 15.6% rise. This growth in rent prices, while significant, was less pronounced than the increase in home prices. The stability in renter percentages despite rising rents suggests a continued demand for rental properties, possibly driven by those priced out of the increasingly expensive housing market.

In 2023, the average home price in Rancho San Diego reached $807,191, showing a modest increase from the previous year. This trend continued into 2024, with average home prices rising to $872,510. Interestingly, this ongoing price appreciation occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates would typically be expected to cool the housing market, yet prices in this area have continued to climb, indicating strong local demand and potentially limited housing supply.

Looking ahead, predictive models suggest that the upward trend in both average home prices and rent prices is likely to continue over the next five years, albeit at a potentially slower rate. Home prices are projected to reach approximately $950,000 by 2029, while average rents could approach $2,200. However, these projections are subject to various economic factors and local market conditions.

In summary, Rancho San Diego has demonstrated a resilient housing market characterized by increasing homeownership rates and rising property values. The area has maintained a strong preference for homeownership despite significant price appreciation, while the rental market has shown steady growth. The continued rise in both home prices and rents, even in the face of higher interest rates, suggests a robust demand for housing in this desirable suburban community.