San Diego 2Q23 Multifamily Market Insights Report: Rents remain on upward trajectory
Highlights:
The San Diego apartment market posted strong performance during the second quarter as asking rents trended higher and vacancy remained fairly tight. Multifamily deliveries were limited in the first half but are expected to ramp up by year-end.
The local vacancy rate rose 30 basis points during the second quarter to 3.8% but remains nearly identical to the region’s long-term average. During the past 12 months, the rate has inched up just 10 basis points.
Asking rents in San Diego have pushed higher for two straight years. During the second quarter, rents reached $2,348 per month, and year over year, rents are up 3.2%.
Multifamily investment activity in San Diego slowed during the second quarter, and sales velocity in the first half of 2023 is down from year-earlier levels. The median sales price year to date is $264,900 per unit, while cap rates in recent transactions have been between 4.5% and 5.5%.
