San Diego Q3 Market Report: Job Growth Fueling Absorption of New Units
Highlights:
- The San Diego multifamily market continues to post strong performance. The market is proving it can absorb the new inventory that has been delivered in recent years, keeping overall vacancy low.
- Vacancy held steady at 3.8 percent, and the rate has dropped 10 basis points year over year. Vacancy in Class B and Class C units averages just 2.2 percent.
- Current asking rents are $1,878 per month, 3.8 percent higher than one year ago. Rents have trended higher at a fairly steady pace since 2016.
- The favorable market performance supported investment sales activity in recent quarters. Year-to-date sales velocity has mirrored levels from 2018, while prices have pushed higher and cap rates have remained flat.
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