San Diego 1Q24 Multifamily Market Insights Report: Rents trend higher after modest 2023

Highlights: 

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• Operating conditions were mostly favorable for multifamily assets in San Diego during the first quarter. Rents grew at a steady pace 
  while vacancies posted a negligible uptick. Though the construction pipeline remains active, deliveries at the start of the year have been slow, allowing the market to absorb the new stock more efficiently. 
• Area vacancy was relatively stable in the opening months of the year, posting a rise of just 10 basis points. The current vacancy
  rate is 4.1%, 60 basis points higher than the figure from one year ago. 
• Rent growth was positive in the first quarter following a brief dip at the end of 2023. Current asking rents have reached $2,355 per month, up 1% over the past 12 months.
• Sales velocity slowed during the first quarter, following a sharp uptick in activity at the end of last year. While the number of sales declined, prices rose, with the median reaching $388,400 per unit. Cap rates remained between 4.5% and 5% across most transactions.

Read the report or contact our San Diego office to learn more.