San Diego 4Q23 Multifamily Market Insights Report: A few more properties sell as 2023 comes to a close


  • The San Diego multifamily posted a modest vacancy increase and minimal rent decline to close 2023, after mostly steady performance during the first nine months of the year. Heightened delivery totals outpaced demand in 2023, although local construction levels have peaked, and future inventory growth is on pace to slow beginning in 2024.
  • Local vacancy trended higher in 2023, including a modest increase during the fourth quarter. Despite the recent rise, the current vacancy rate is only slightly higher than the market’s five-year average.
  • For the first time in nearly three years, asking rents in San Diego inched lower in the fourth quarter. Average rents dropped 0.7% during the period, ending the year at $2,333 per month. For the full year, rents rose just 0.2%.
  • Sales velocity in the region slowed in 2023, but more transactions closed in the fourth quarter than during any other period of the year. Cap rates have trended higher, averaging approximately 5.1%, while the median price dipped to $296,000 per unit.

Read the report, or engage with our San Diego office to learn more.