San Diego Multifamily Market
Report

Completions temper outside of still active Balboa Park. San Diego’s vacancy rate adjusted nominally over the past three years, remaining in the low-4 percent band, despite adding 13,000 units. The size of the metro’s 20- to 34-year-old demographic, who are facing significant barriers to homeownership, is partially to credit for this steadfast demand. Entering 2026, this cohort accounted for 22 percent of the local population, the third-largest share nationally. With San Diego State University, Cal State San Marcos, and the University of California San Diego all posting record enrollment, the metro’s younger renter pool should remain sizable. As such, developers are most active in areas popular among recent graduates and other younger professionals — highlighted by the 1,700 units underway in Balboa Park-adjacent neighborhoods, including Bankers Hill. Elsewhere, supply pressure will be generally modest in 2026, with demand exceeding completions. This will counteract the effects the Balboa Park-centered supply wave has on both Class A and overall fundamentals, supporting slight vacancy compression.