Tom York On Business: High-Income Renters In San Diego Have Doubled Over 5 Years

By Tom York, Times of San Diego

February 22, 2023

Ever wonder why the cost of renting has gotten so high in the region? Well, apartment rental website RentCafe provides some insights when answering this question.

According to a recent study conducted by the site, nationwide rising “home prices and a taste for flexibility led to a wave of high-incomers” competing in the rental market over the past half decade.

According to the recent analysis, more than 2.6 million Americans earning $150,000 and more opt to rent rather than purchase homes.

Here in California, this group exploded 136% over the past five years.

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

The study finds that the number of well-heeled renters in San Diego have doubled since 2018 to 33,500.

And it’s pretty obvious that this demand for luxury living is one reason why we see so many luxury apartment units coming to market.

During the same timeframe, home prices increased 36% — less than sister cities in the state like San Jose which had a 50%-plus increase — but still well above the national average of 29%.

Some other Findings: San Diego ranked No. 7 on a list of the top 20 high-income renter spots.

San Francisco came in No. 1 with more than 80,000 units occupied by well-compensated renters. Last one the list was San Antonio, Texas, with less than 3% of the units occupied by those making $150,000 or more.

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Hungry for something new when dining out? Here are a couple of restaurant tidbits.

A new franchise of The Great Greek Mediterranean Grill has opened in the Kearney Mesa neighborhood — the first franchise location of this chain in California.

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

Meanwhile, a new restaurant, The Sushi Stand, opens at Point Loma’s Liberty Public Market. It becomes the market’s only sushi restaurant, according to a publicist.

The eatery was launched by the owners of SoCal chain Le Parfait Paris, plus Guillaume and Ludivine Ryon.

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Fortune 500 news: Fortune Magazine has named local energy provider Sempra as one of its ‘World’s Most Admired Companies for 2023.

According to a Sempra news release, the corporation has now made 13 appearances on the prestigious list.

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Local nonprofit Wounded Warrior Homes re-opened its home in Vista for wounded-warriors. The home accommodates four veterans with such as post-traumatic stress and traumatic brain injury.

According to a publicist for the group, veterans can stay up to two years on an as-needed basis in the home while getting support such as counseling and rehabilitative services.

The home re-opening brings the total number of veterans housed through Wounded Warrior Homes up to 14 at a time.

The house needed repairs and upgrades, with local sponsors including Mechone, ServPro of North Vista and San Marcos, Collins Pacific Plumbing and Forza HotMop.

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Political action group San Diego County Gun Owners, which advocates for 2nd Amendment rights, has appointed Gail Ramer a former staff member for two Sacramento legislators for 12 years, as its new executive director.

Michael Schwartz, SDCGO’s founder, made the announcement.

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

Ramer was a staff member for former assemblyman and current state Senator Brian Jones, and later Assemblyman Randy Voepel.

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

This new financing continues a history of impressive growth for the company, even during difficult market conditions, according to a publicist.

As Mulligan Funding’s first securitization, the senior bonds achieved an A rating from Kroll Bond Rating Agency, the highest rating they will award a first-time issuer in this asset class, she said.

The facility has a 3-year revolving period and is expandable to $500 Million.

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The Carlsbad Chamber of Commerce is celebrating its 100th anniversary in 2023, and has scheduled a number of activities throughout the year to note the achievement, according to a news release.

Since the chamber preceded Carlsbad’s incorporation by 30 years, and county government was 35 miles distant in San Diego, the organization became the voice of the community, and remains a powerful business influence today.

President and CEO Bret Schanzenbach said the chamber will hold community block party Aug 18. “to thank the community, along with a red-carpet gala on Oct. 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 Canadian-based public company said incorporation of these products “reflects its efforts toward creating more sustainable and ethical food systems, without compromising on the most important factor, taste.”

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

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Detection of fentanyl in urine drug test specimens remains near historic highs and fentanyl co-detection in individuals using heroin, prescription opioids, methamphetamine, or cocaine has reached new heights, according to a report issued from San Diego testing lab Millennium Health this week.

According to the company, between 2019 and 2022, drug tests positive for fentanyl increased 146% nationally and increased in nearly every U.S. census division, especially in the Pacific and Mountain regions, where fentanyl positive tests increased 875%.

More than 83% of fentanyl-positive specimens also contained additional drugs; approximately 30% were positive for one additional 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 who specializes in writing about business and the economy. If you have news tips you’d like to share, send them to tom.york@gmail.com.

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