Despite a vacancy rate that ticked-up in the fourth quarter of 2022 to 3.5%, a new report from Northmarq indicates the multifamily market in San Diego finished the year solidly, posting a 1.8% rise in rents to $2,327 per month in Q4.  The research also shows that on a year-over-year basis, San Diego asking rents jumped 8% from 2021. 

Developments in the region tapered-off in the fourth quarter, but remain stable compared to previous years. There are currently 4,600 units under construction with Downtown San Diego and Balboa Park the most active submarkets.

On the investment side, multifamily deal volume in the fourth quarter doubled compared to Q3, although total transaction volume in 2022 fell 28% compared to a year earlier. Pricing, however, increased 12% year-over-year, with a median price of $358,900 per unit. Northmarq expects good things to continue, forecasting San Diego to be one of the strongest multifamily markets in the country in 2023.