Metro Reports Multifamily Market Real Estate Trends

San Diego Multifamily Market Report – February 2023

San Diego Multifamily Market Report February 2023
Photo by Wirestock/

Market Stabilizes After Strong Growth Period

Toward the end of the year, San Diego’s fundamentals began moderating, as the metro entered the winter season. After a strong first half of the year, rent growth ended 2022 with a 0.3% contraction on a trailing three-month (T3) basis through December, to an average of $2,658. Occupancy also followed this trend but remained elevated, with the rate dropping 60 basis points year-over-year, to 97.2%.

The job market regained its footing, with San Diego unemployment falling to 3.3% as of November, according to preliminary data from the Bureau of Labor Statistics. The metro outperformed both the California and national rates, showing strong performance. In the 12 months ending in October, the workforce expanded by 4.4%, with 44,500 positions added. The long-delayed plan to redevelop 331 acres at San Diego’s Brown Field Municipal Airport gained traction—Industrial Realty Group entered a joint venture with Belzberg & Co. for the Metropolitan Airpark project in the Otay Mesa submarket. The 20-year development is estimated to cost $1 billion and will include more than 1 million square feet of retail, industrial space and a hotel.

Completions totaled 2,862 units, representing a 1.4% expansion of stock—30 basis points lower than 2021’s figure and 70 basis points lower than the U.S. rate. Sales totaled $2.3 billion in 2022, cooling off after the $3.8 billion cycle-peak of the previous year.

Read the full Matrix Multifamily San Diego-February 2023

About the author

Tudor Scolca-Seusan

Tudor Scolca-Seusan has worked as an Associate Editor with Yardi for a combined four years. He is focused on writing Yardi Matrix multifamily market reports, in-depth articles and interviews/Q&As for Commercial Property Executive, specializing in industrial real estate and data centers.

Add Comment

Click here to post a comment