San Diego Multifamily Market Report

The following reflects San Diego multifamily market conditions as of Q2 2026.

The San Diego multifamily market in 2Q 2026 remains fundamentally healthy, with rent growth continuing and demand accelerating despite a modest increase in vacancy. Net absorption and construction deliveries both surged year-over-year, while the development pipeline contracted as fewer projects broke ground. Explore our full San Diego multifamily market review for detailed analysis of rents, vacancies, construction activity, investment sales, and market trends.

Frequently Asked Questions

What is the multifamily vacancy rate in San Diego in Q2 2026?

San Diego’s multifamily vacancy rate was 5.5% in Q2 2026, according to Kidder Mathews research. This is up 60 basis points from 4.9% in Q2 2025, though it held steady compared to the 5.5% recorded in Q1 2026. The increase reflects the continued absorption of new supply delivered over the past year.

What are average asking rents for apartments in San Diego right now?

The average asking rent for San Diego apartments reached $2,453 per unit per month in Q2 2026, a 0.82% increase year-over-year from $2,433 in Q2 2025 (Data source: CoStar). By unit type, average monthly rents were $1,846 for a studio, $2,194 for a one-bedroom, $2,684 for a two-bedroom, and $3,095 for a three-bedroom unit.

How much multifamily net absorption has San Diego seen in 2026?

San Diego apartments recorded 3,827 units of net absorption year-to-date through Q2 2026, up 39.21% from 2,749 units over the same period in 2025, according to Kidder Mathews research. Net absorption measures the net change in occupied units, so this increase signals that renter demand is outpacing the prior year’s pace. In the second quarter alone, net absorption totaled 1,983 units.

How many multifamily units are under construction in San Diego?

San Diego had 11,800 multifamily units under construction as of Q2 2026, down 20.85% from 14,908 units a year earlier, according to Kidder Mathews research. This marks a notable pullback in new groundbreakings even as deliveries from the prior development cycle continue to reach the market. Significant projects underway include Hines Riverwalk (721 units) and Avalon Mission Valley (621 units), both in Mission Valley, with expected deliveries in Q2 2028.

How many multifamily units were delivered in San Diego in 2026?

Developers delivered 4,785 multifamily units year-to-date through Q2 2026 in San Diego, a 42.37% increase over the 3,361 units delivered during the same period in 2025 (Data source: CoStar). In the second quarter alone, 2,185 units were completed. Notable Q2 2026 completions included Broadstone Mission Valley (497 units) and The Torrey (450 units) in Civic Core.

What was the largest multifamily sale transaction in San Diego in Q2 2026?

The largest multifamily sale in San Diego in Q2 2026 was Windsor Mission Valley, a 305-unit property in Mission Valley that sold for $148,500,000, or $486,885 per unit, according to Kidder Mathews research. GID Investment Management acquired the property from R&V Management Corp. The second-largest transaction was Casas By The Sea in Pacific Beach, a 144-unit property that sold for $90,300,000 ($627,083 per unit).

What is the average multifamily sales price per unit in San Diego?

The average multifamily sales price in San Diego was $398,509 per unit in Q2 2026, essentially flat with a 0.25% year-over-year increase from $397,511 per unit in Q2 2025 (Data source: CoStar). This compares to $373,300 per unit in Q1 2026.

What are current multifamily cap rates in San Diego?

The average multifamily cap rate in San Diego held steady at 4.7% in Q2 2026, unchanged year-over-year from Q2 2025 (0 basis points of movement), according to Kidder Mathews research. This compares to 5.0% recorded in Q1 2026, suggesting cap rates have compressed slightly over the past quarter.

What are average rents by unit type in San Diego apartments?

Average monthly rents in San Diego by unit type were $1,846 for a studio, $2,194 for a one-bedroom, $2,684 for a two-bedroom, and $3,095 for a three-bedroom, according to Kidder Mathews research (Data source: CoStar). These figures reflect market-wide asking rents as of Q2 2026.

What is the outlook for the San Diego multifamily market?

The San Diego multifamily market remains fundamentally healthy heading into the second half of 2026, with rent growth continuing and renter demand accelerating despite a modest rise in vacancy, according to Kidder Mathews research. A contracting development pipeline, down 20.85% year-over-year in units under construction, suggests supply pressure may ease in coming quarters even as recently delivered projects continue to lease up.

Last updated: Q2 2026. Data source: CoStar. Compiled by the Kidder Mathews Research Group.

2Q 2026 San Diego Multifamily Market: Key Data Points

Explore our full San Diego multifamily market review for detailed analysis of rents, vacancies, construction activity, investment sales, and market trends.

• Vacancy Rate Rises but Remains Low: San Diego’s multifamily vacancy rate reached 5.5% in 2Q 2026, up 60 basis points year-over-year, remaining below many major U.S. apartment markets.
• Average Asking Rents Continue Growth: Average asking rents increased to $2,453 per unit per month, representing a 0.8% year-over-year gain.
• Construction Pipeline Contracts: Units under construction declined to 11,800, a 20.9% decrease from 14,908 units one year ago.
• Apartment Demand Accelerates: Net absorption totaled 3,827 units year-to-date, rising 39.2% year-over-year and demonstrating strong renter demand across the market.
• Construction Deliveries Increase Significantly: Developers delivered 4,785 units year-to-date, a 42.4% increase compared to the same period in 2025.
• Investment Pricing Remains Stable: Average multifamily sales prices reached $398,509 per unit in 2Q 2026, while average cap rates held steady at 4.7% year-over-year.

Average Rent by Unit Type

Significant Sale Transactions Q2 2026

Significant Under Construction

Significant Completed Construction Q2 2026

Market Breakdown — Quarterly Comparison

Market Breakdown — Year-to-Date Comparison