The San Diego multifamily market in 1Q 2026 reflects steady renter demand and moderating fundamentals, with vacancy edging up slightly while rents remain flat year-over-year. Construction activity continues to decelerate, absorption outpaces deliveries, and investment pricing shows modest softening as cap rates expand. View our full San Diego multifamily market report for detailed performance metrics, notable transactions, and submarket insights.
1Q 2026 San Diego Multifamily Market: Key Data Points
- Vacancy Rate Ticks Up Modestly: San Diego’s multifamily vacancy rate increased to 5.4%, up 50 basis points year-over-year, signaling mild softening as new supply delivers.
- Rents Hold Steady: Average asking rents average $2,417 per unit, remaining flat year-over-year, reflecting rent stability despite rising vacancy.
- Construction Pipeline Contracts: Units under construction declined to 11,323 units, a 24% year-over-year decrease, easing future supply pressure.
- Absorption Outpaces Deliveries: Net absorption totaled 1,850 units, exceeding quarterly deliveries of 2,430 units and posting a 10% annual gain.
- Investment Pricing Softens: Average sales price declined 2% year-over-year to $369,930 per unit, while average cap rates expanded to 5.0%.
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