San Diego Multifamily Market Report

Apartment rents alter tenants’ decisions. San Diego entered April with the lowest vacancy among U.S. secondary markets, a list that includes the expanding Sun Belt metros of Austin, Las Vegas, Nashville, Phoenix and Orlando. The performance of local suburban rentals is largely to credit, as sub-4 percent vacancy prevailed outside of the CBD for more than eight years leading up to 2024. The metric ticked above that threshold in the first quarter, however, as demand assumes new forms. Recent data indicates more individuals are taking on roommates at a time when consumers’ budgets are being tested and the average suburban rent is nearly $2,700 per month — the fifth highest rate in the country. One-bedroom vacancy metrowide rose 130 basis points over the past year, eclipsing increases noted in the two- and three-bedroom segments.