San Diego Q4 Multifamily Market Report: Sales Activity Accelerates as the Local Labor Market Rebounds


  • The San Diego multifamily market posted improving conditions to close out the year, building on gains recorded during the third quarter. Asking rents advanced at an unprecedented rate in recent months while the local labor market recorded an ongoing recovery. Renter demand is expected to remain elevated in the year ahead.
  • Vacancy dipped 10 basis points during the fourth quarter, and the rate ended the year at 4.3 percent. While the rate inched lower in the final few months of the year, vacancy rose 30 basis points for the full year. With the exception of Downtown, most submarkets across San Diego posted vacancy rates between 2.5 percent to 4.5 percent.
  • Asking rents jumped 6.2 percent during the fourth quarter and spiked 15.9 percent for the full year. After the steep increases, asking rents ended 2021 at $2,155 per month.
  • Transaction velocity gained momentum in the last few months of the year, outpacing levels recorded in recent periods. The median sales price trended higher during 2021, ending the fourth quarter at $321,000 per unit. As prices rose, cap rates compressed, averaging approximately 3.1 percent during the fourth quarter.

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