San Diego Multifamily Market
2024 Investment Forecast
San Diego Retains Status as One of the
Nation’s Least Vacant Markets
Rental demand stays steadfast. Spanning property tiers, San Diego ranked among the nation’s five tightest major markets at the onset of this year, maintaining a sub-5 percent vacancy rate since early 2012 — a 47-quarter span. The metro is well positioned to maintain this ranking for the foreseeable future, being home to both the largest portion of 20- to 34-year-olds on the West Coast, as a share of total population, and a median home price nearing the $1 million mark. Local conditions are even tighter, at a collective low-3 percent rate, when excluding operations in Downtown San Diego and La Jolla-University City, where average rents exceed $3,000 per month. Across these other 11 submarkets, near-term deliveries are relatively sparse in 2024, with only intermittent projects slated for completion across most cities outside of San Diego proper. This dynamic, a steady rate of household formation, and clear delineations in rents by class of roughly $600 per month will slot most renters into specific pools, maintaining strong demand across property tiers.