San Diego Q1 Multifamily Market Insights: Rent Growth Accelerates to Start 2022

Highlights:

  • The San Diego multifamily market began 2022 on an upswing. Vacancy tightened and rents continued on an upward trajectory. Apartment construction is expected to remain active in the coming quarters as developers rush to meet demand.
  • The vacancy rate dropped 30 basis points in the first quarter, ending the period at 4 percent. Year over year, the rate dipped 10 basis points. Local vacancy reached its lowest level since the end of 2020.
  • Asking rents in San Diego rose 3.3 percent from January through March, reaching $2,226 per month. Year over year, average rents spiked 19.7 percent with additional gains forecast for the remainder of this year.
  • While fewer properties changed hands, prices surged as the median sales price rose to $408,000 per unit in the first quarter. Cap rates remain low, averaging approximately 3 percent at the start of the year.

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