Rents Slide, Supply Pace Holds Steady
San Diego weathered economic pressures coming out of the first quarter, as both the wider real estate valuation reset and significant supply growth pressured the market, according to the latest San Diego multifamily market report. Average advertised asking rents slid 0.1%, on a trailing three-month basis through April, to an average of $2,718, 30 basis points below the U.S. figure. The market’s average occupancy in stabilized assets ticked down 30 basis points year-over-year, to 95.9% as of March, still above the 94.2% national figure, which slid 50 basis points over 12 months, as noted in the U.S. multifamily market report.
Employment growth stood at 0.5% through December, trailing the U.S. average by 10 basis points. The metro gained 5,500 jobs last year, with a few sectors registering growth, led by education and health services (15,100 positions). Six sectors lost 17,200 jobs combined, with professional and business services taking the largest hit (-6,200). Unemployment was relatively tight at 4.3% in March, on par with the U.S. figure, according to preliminary Bureau of Labor Statistics data. Recent local milestones include the new outpatient pavilion at the UCSD Hillcrest health-care campus redevelopment and IQHQ’s first life science lease within its $1.9 billion RaDD district.
Supply growth maintained momentum in early 2026, with developers adding 2,204 units through April. Another 11,703 units were under construction, while our latest estimate points to more than 8,000 units coming online this year.
Read the full Yardi Matrix San Diego Multifamily Market Report: June 2026
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