Market Report
San Diego Multifamily Market Report
1Q 2026
Younger Renter Pool, Out-of-Reach Home Prices
Allow Apartment Sector to Remain in a Low-Vacancy State
Completions temper outside of still active Balboa Park. San Diego’s vacancy rate adjusted nominally over the past three years, holding in the low-4 percent band despite the addition of 13,000 units. The size of the metro’s 20- to 34-year-old demographic, who face significant homeownership barriers, is partially to credit for this steadfast demand. Entering 2026, this cohort accounted for 22 percent of the local population, the third-largest share nationally. With San Diego State University, Cal State San Marcos, and the University of California San Diego posting record enrollment, the metro’s younger renter pool should remain sizable for the foreseeable future. As such, developers are most active in areas popular among recent graduates and other younger professionals, highlighted by the 1,700 units underway in Balboa Park-adjacent neighborhoods, including Bankers Hill. Elsewhere, supply pressure will be modest in 2026, with demand exceeding completions. This will counteract the effects the Balboa Park-centered supply wave has on overall fundamentals, supporting slight vacancy compression.
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