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Market Report

San Diego Multifamily Investment Forecast

2022 Outlook

Economic Gains and Record Home Prices Extend Span of Extremely Sparse Vacancy

Three-pronged job growth fuels demand across tiers. Net absorption in San Diego County last year nearly doubled a two-decade-high volume of unit deliveries. This performance has placed the metro among the least-vacant markets in the nation heading into 2022, with several factors poised to maintain this standing. The local biotech sector continues to expand this year, evident by the number of projects that are transforming office and warehouse properties into life science facilities. While many employees in this industry earn a high wage, the median home price surpassing $900,000 this year puts homeownership out of reach for many. Class A rentals will benefit as the number of units slated for delivery falls below the prior five-year average. Elsewhere, a rebound in tourism should boost leisure and hospitality hiring, with industrial growth near the U.S.-Mexico border driving trade, transportation and utilities-related job creation as well. Together, the growth of these sectors preserves what is already robust Class B and C demand.

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