It increases demand which causes prices to rise. 

I ended up owning about 250 of these.. and having to sell them off taking loss's virtually everyone of them it was a blood bath for us HML in 08 to 2010.. and not anything I want to ever repeat.. those that started lending HM post 2011 have had the rising tide great market situation but even with the good market people fail all the time for various reasons. 

I know condos might not be the best investment, but I'd rather own something in the city than keep paying rising rent. 

Even in areas without significant disaster risk, we're still seeing insurance costs rise due to broader industry pressures.The Long-Term ViewFor those of us deeply involved in multifamily syndications, it’s crucial to educate LPs and partners about these changes.

And, for the last 50 years, Boulder, CO has offered investors and homeowners some of the fastest rising rents and prices in the country. 

I recommend instead: having no more than 75% leverage at any given time (and even less leverage, once interest rates rise)...

While there are good operators out there, their will be plenty in this environment of rising rates, expanding cap rates, and not executing their business plans, that will loose all their investors money.

Anyone can make money in a rising market.

It should start improving and as it improves prices are likely to rise faster than the San Diego market.  

On an annualized basis, asking and effective rents are projected to rise at a rate of 3.0% through year end 2026, reaching average rates of $2,569 and $2,462 per unit, respectively.Full Market Report