Read the latest Yardi Matrix San Diego Multifamily Market Report.
Rents Tick Down, Construction Levels Off
San Diego ended 2024 with overall balanced fundamentals, with most metrics falling back to historic levels. In line with seasonal trends, average advertised asking rents in the metro were down 0.1% on a trailing three-month basis through December, to $2,744, according to the latest San Diego multifamily market report. Year-over-year, the rate was up 0.5%, 10 basis points below the national figure. Meanwhile, overall occupancy in stabilized assets remained healthy, down only 20 basis points year-over-year, to 96.1%, as of November. The rate was above the 94.7% U.S. average, as noted in the national multifamily market report.
San Diego’s unemployment rate was 4.6% in November last year, up 30 basis points year-over-year, according to preliminary data from the Bureau of Labor Statistics. The figure was above the 4.2% national rate, but significantly below California’s 5.4%. In the 12 months ending in November, San Diego added 8,900 net jobs, with employment growth clocking in at 0.7%. Developers are still bullish on the metro’s life science sector, with projects such as Alexandria Real Estate Equities’ proposed 2.4 million-square-foot biotechnology campus on the horizon.
Developers completed 4,610 units last year, just roughly 500 units short of 2023’s total and about 600 units more than the annual average recorded since 2017. Activity leveled off from 2023’s outsize performance, with the pipeline including 10,457 units under construction in December, as well as an additional 45,000 units in the planning and permitting stages.
Read the full Yardi Matrix San Diego Multifamily Market Report: February 2025
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