Scroll Down
San Diego Registers Broad Improvement in Renter
and Investor Demand Prior to Period of Uncertainty
Widespread shift in vacancy evident. Apartment leasing elevated across the price spectrum during the yearlong period ended this March. Vacancy compressed or held in all of San Diego’s 13 submarkets. Lower-cost areas with sizable concentrations of Class C units, East County and Mid-City-National City, saw vacancy rates fall to 3.3 percent and 2.7 percent, respectively — the lowest among submarkets. Meanwhile, coastal areas with larger Class A and B inventories and average rents above $3,200 per month notched some of the most pronounced compressions, led by La Jolla-University City with a 190-basis-point drop. This broad demand improvement, along with significant local barriers to homeownership, support an optimistic outlook for San Diego’s multifamily sector as a period of potential economic volatility and additional unit deliveries approaches.