San Diego Quarter 3 Multifamily Market Update

[Christina Labowicz]

• The San Diego apartment market is amid a stretch of the strongest demand in at least 20 years.
• Overall vacancy rate of 2.4% compares to the stabilized rate of less than 2%.
• With recent demand, asking market rent growth is soaring, to its highest level in 20 years at 12.9%.
• More than half of San Diego submarkets recorded double-digit rent growth and asking market rents have grown by an average of 17% YOY ($2,600/month).
• The current pipeline of 7,300 units will be unlikely to apply much upward pressure on regional vacancy rate.

•Prices are expected to keep pushing upwards as supply and demand remain uneven, with demand far exceeding the supply.