For seven years, Steve Harrison has lived in a studio in Hillcrest where he pays $850 a month, almost unheard of in San Diego.

Harrison, a marketing manager, said by staying in a 315-square-foot apartment he has been able to save money.

“I have a great deal here and I like the low cost and location,” he said Monday. “Plus, it is less to clean.”

A lot more people would like to have Harrison’s situation. There are only about 10,000 studios in San Diego County and they fill up faster than other options. That’s compared to about 70,000 one-bedroom units and 90,000 two-bedroom units, according to real estate tracker CoStar.


Smaller apartments fill up quickly as San Diegans, concerned about rising rents, are increasingly eager to move into studios. But, those units also go for a premium.

Studios were commanding about $2.60 a square foot at the end of the first six months of 2016, said the latest report from real estate tracker CoStar. But, one-bedrooms cost $2.15 per square foot and two-bedrooms ran $1.85 square-foot.

According to CoStar’s analysis of 230,000 units, the average rent for a studio was $1,251 a month. It was $1,441 for a one-bedroom and $1,780 for a two-bedroom.

Studio prices since the second quarter of 2012 until now have increased, on average, by 8.7 percent, says CoStar data. The one bedroom price has increased 6.9 percent in that same time, and two-bedroom units rose 6.3 percent.


The biggest change was in 2015 when the average price of a studio went up 15.1 percent compared to 2014, CoStar said. In the same time period, one bedrooms went up 9.5 percent and two bedrooms increased 8.7 percent.

Evan Morris, property manager for Orion Management & Realty, said he gets 25 calls a day for a studio if one becomes available. He only manages eight studios out of nearly 100 apartments.

“Studios are very appealing to the renter that loves city living but doesn’t want to pay the market price of a one bedroom,” he said.

At least one builder downtown has tapped into the demand for studios. Foster City-based Legacy Partners is building a complex with 78 studios, 79 one bedrooms and 11 two bedrooms called 4th & J.


Dave Pinto, development director at Legacy, said the company didn’t necessarily set out to build a bunch of studios but, when it did its analysis, realized downtown was mostly one- and two-bedrooms.

Legacy Partners is building a 168-unit complex with 78 studios, 79 one bedrooms and 11 two bedrooms called 4th & J. It was designed by Carrier Johnson + Culture. (Legacy Partners )

He said the complex, on the south side of J Street between Third and Fourth avenues, is aimed at millennials who want to live downtown, but can’t afford the new luxury units being constructed.

“The location is as good as it gets for downtown and we did a lot of amenities on the building,” Pinto said.


He said because people might not want to entertain in smaller units, the complex will have two rooftop decks, pool and spa area, outdoor kitchen, barbecue, fire pit area and gym. Construction on 4th and J should begin next summer, Legacy said.

Pinto said the price for apartments at 4th and J should start around $1,800 and go up through $3,000.

Borre Winckel, president and CEO of the local Building Industry Association, said he understands why current market conditions could force more people into a studio. But, he said it could have a dark side.

“I sure hope we don’t get to a studio higher volume scenario because people are willing to live as couples in studios,” he said,” which is to me is not a good scenario. Not a quality of life scenario.”


There are more than 2,750 apartments under construction in downtown San Diego, but those units still won’t meet demand, CoStar said. The exact number of studios coming out in the new projects is uncertain but Joshua Ohl, CoStar senior market analyst, said there is incentive for builders to construct more studios.

“From a developer’s perspective, if you fill out a complex with 50 percent studios and are able to charge that high price per square-foot — versus two bedrooms — it’s just more renters that you can fill out and cover costs better,” he said.

The report did cite some positive signs builders are getting more aggressive getting units built, such as the planned Ballpark Village east of Petco Park. The complex will include 439 luxury apartments in a 37-story tower and 274 rentals in six- and seven-story low-rise buildings.