Skip to main content

Market Report

San Diego Multifamily Market Report

2025 Investment Forecast

Diverse Renter Pool Shifts Vacancy Trajectory;
Areas of Long-Term Tightness Coveted by Investors

Cost-of-living factors benefit owners across property tiers. San Diego’s median home price surpassed the $1 million mark last year — a milestone that will limit housing options for a large percentage of the local populace in 2025. Concurrently, the metro entered this year with sub-5 percent vacancy despite its near-record average effective rent. Together, these factors will facilitate strong near-term demand across the multifamily spectrum. Households seeking Class C apartments will gravitate to cities composing East and North counties, as well as neighborhoods immediately south and east of Downtown San Diego, preserving sub-4 percent vacancy in these areas. Higher-earning residents priced out of homeownership should aid Class A and B fundamentals and leasing activity for the large-scale projects slated for completion. Contrasting prior delivery waves, upcoming additions of size are in the suburbs of San Diego proper. As such, the relatively small number of units slated for Downtown San Diego should be well received, potentially returning CBD vacancy to a rate more in line with its prior 10-year mean.
TO READ THE FULL ARTICLE
MM Texture Background