Multifamily property fundamentals in San Diego improved during the second quarter. Vacancy inched lower, rents rose, and employment growth fueled absorption of units.
Vacancy dipped 10 basis points in the second quarter, falling to 3.8 percent. The rate is down 20 basis points year to date. Vacancy has ranged between 3 percent and 4 percent since the second half of 2015.
Asking rents in San Diego rose 1.1 percent in the second quarter and are up 4.7 percent from one year ago. Current asking rents are$1,850 per month.
Despite the market’s strong performance, fewer multifamily properties sold in the second quarter than changed hands during the ﬁrst quarter. The median price in transactions year to date is approximately $258,200 per unit, while cap rates have averaged 4.7 percent. Both measurements are nearly identical to 2018 ﬁgures.