San Diego Multifamily Market Report

Contrasting submarkets well positioned. San Diego apartment vacancy has held below 5 percent since early 2012, a stretch recently extended by strong demand at both ends of the price spectrum. In Carlsbad-Encinitas-Del Mar and La Jolla-University City, vacancy in March stood at 3.4 percent and 3.7 percent, respectively, despite rents typically above $3,200 per month. Here, vacancy should remain low as significant barriers to homeownership price out most prospective buyers, resulting in a sizable pool of mid- to higher-earning renters. Limited vacancy is also apparent in Mid-City-National City, Escondido, and East County, where rent below $2,400 per month — a notable discount to the metro average — should preserve tight conditions for the foreseeable future.