San Diego Q4 Market Insights: Sales velocity picks up to close 2022
Highlights:
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- Most property performance metrics in San Diego improved in 2022, and conditions were strong in the fourth quarter. Asking rents ticked higher in the final months of the year while vacancy rose slightly.
- Local vacancy trended higher before the end of 2022, rising 20 basis points in the fourth quarter to 3.5 percent. This followed a period of four consecutive quarters where the rate declined. Year over year, the vacancy rate tightened 80 basis points.
- Apartment rents ticked higher in the final months of the year, rising 1.8 percent to $2,327 per month. In 2022, asking rents rose 8 percent.
- The multifamily investment market made some gains at the end of 2022, as deal volume accelerated, and sales prices remained above the 2021 figure. The
median sales price in 2022 reached $358,900 per unit, up nearly 12 percent. Cap rates averaged around 4 percent during the fourth quarter.
