San Diego Multifamily Report – June 2026
This market is withstanding wider pressures.
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. Average advertised asking rents slid 0.1 percent, 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 percent as of March, still above the 94.2 percent national figure, which slid 50 basis points over 12 months.
Employment growth stood at 0.5 percent 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 percent 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.
