San Diego Multifamily Market Report
2024 Investment Forecast
Limited Vacancy Evident Across Asset Classes,
Preserving San Diego’s Top Status on a National Scale
Metro is an area of steadfast rental demand. Spanning property tiers, San Diego ranked among the nation’s five tightest major markets at the onset of this year, maintaining a sub-5 percent vacancy rate since early 2012. The metro is poised to maintain this ranking for the foreseeable future, as it is home to both the largest portion of 20- to 34-year-olds on the West Coast, as a share of total population, and a median home price nearing the $1 million mark. Local conditions are even tighter, at a collective low-3 percent rate, when excluding operations in Downtown San Diego and La Jolla-University City, where average rents exceed $3,000 per month. Across these other 11 submarkets, near-term deliveries are relatively sparse in 2024, with only intermittent projects completed across most cities outside of San Diego proper. This dynamic, a steady rate of household formation, and clear delineations in rents by class of roughly $600 per month will slot most renters into specific pools, maintaining strong demand across property tiers.