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San Diego rents forecast to increase another 2.9 percent in 2018

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Zillow has forecast that San Diego renters are not going to see a break in rent prices in 2018; they will continue to rise significantly.

Over the past year, San Diego rent rose 2.4 percent.

Average rent has broken the website's national record being calculated at $1,435.

In San Diego that average is nearly double at $2,500. According to Zillow rents will rise again in 2018 by another 2.9 percent.

The site attributes the increases to growing incomes and single-family rentals which are driving indicators.

"After about a two-year slowdown, rent growth is starting to pick back up across the nation," Aaron Terrazas, Zillow senior economist, said in a release. "The slowdown in rental appreciation, combined with consistent income growth, gave renters some reprieve from worsening rental affordability over the past few years.

"But as rental growth begins to catch up with income growth, affordability will deteriorate, placing a squeeze on budget-constrained renters."

Rental hikes according to ABC 10 are predominantly in areas where employment increases. This will also influence people looking to buy homes.

"More widespread rent growth could mean home buying demands stay high, as renters who can afford it move away from the unpredictability of rising rents toward the relative stability of a monthly mortgage payment instead," Terrazas added.

In November, San Diego's median home value sat at $560,800, according to Zillow. That will also increase by 4.2 percent in the next year. 

But homes available to buy are expected to decrease by 25-percent in 2018.