San Diego Q3 Multifamily Market Report: Vacancy Ticks Higher, Remains Tight in Suburban Areas

Highlights:

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• The San Diego multifamily market softened somewhat during the third quarter. Vacancy rose and rents dipped following stable property conditions during the first half of the year.
• Vacancy rose 20 basis points during the third quarter, reaching 4 percent. Vacancy rates in less costly suburban areas outside of the city of San Diego are generally tighter, averaging between 2 percent and 3 percent.
• Asking rents dipped 1.2 percent in the third quarter. Year over year, asking rents are down 0.5 percent at $1,868 per month.
• The multifamily investment market included just a handful of transactions during the third quarter. The median price was approximately $244,300 per unit through the first three quarters, and cap rates have averaged 4.2 percent.

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