San Diego Q2 Multifamily Market Report: Local Investment Activity Continues Uninterrupted
Highlights:
- The San Diego multifamily market continued to post steady performance in the first half of 2020, even with the economic obstacles brought on from COVID-19. Renter demand remains elevated, with absorption nearly matching the pace of new supply
growth in recent years. - Vacancy held steady at 3.8 percent during the second quarter, and the rate is unchanged from one year ago. While the Downtown area is recording an elevated vacancy rate, the suburban submarkets are posting rates generally ranging from 2 percent to 3.5 percent.
- Rent trends have been mixed. Asking rents ended the second quarter at $1,890 per month, down 0.3 percent from the first quarter. Rents are up from one year ago, but that is due to gains recorded in the second half of 2019.
- Multifamily investment volume was consistent from the first quarter to the second quarter. Year to date, the median price is approximately $242,700 per unit, while cap rates have averaged 4.2 percent.
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