San Diego Q1 Multifamily Market Report: Employment Outlook Strengthens as Apple Announces Expansion
Highlights:
- The San Diego multifamily market proved fairly resilient in the opening quarter of 2021. Apartment rents held steady following several months of modest declines, while the vacancy rate inched higher.
- Vacancy rose 10 basis points from the fourth quarter to the first quarter, finishing the period at 4.1 percent. Several submarkets where rents are lower and new development has been limited have vacancy rates under 2.5 percent.
- After trending lower in the final three months of 2020, rents were essentially flat during the first quarter. Asking rents ended the quarter at $1,859 per month. Year over year, asking rents are down 1.9 percent.
- Sales of apartment properties in San Diego got off to a healthy start in 2021. Sales velocity was ahead of last year’s pace, and cap rates compressed to just 3.9 percent, while the median price dipped to $256,500 per unit as more Class C properties sold.
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