San Diego Multifamily Report – Fall 2019
Multifamily demand across the metro continues to be strong, with supply one step behind.
San Diego’s multifamily market remained relatively strong going into 2019’s last innings, boosted by population growth and a healthy, albeit slowing, economy. Housing demand continued on a high note, with supply one step behind. Meanwhile, rent growth softened slightly to 2.5 percent year-over-year as of October.
Employment growth was led by the professional and business services sector, which gained 7,700 positions in the 12 months ending in September 2019. The government sector followed, with 6,900 jobs. The ever-growing tech sector is further boosted by the University of California San Diego’s economic impact, which is expected to reach $12.9 billion yearly by 2032 for the county alone, according to a Tripp Umbach report.
Investment activity remained sturdy during 2019’s first 10 months, with more than $1.1 billion in assets trading as of October. Although apartment development stayed steady, the metro should have no trouble absorbing new stock due to the addition of jobs across the board, especially in high-paying sectors. As of October, more than 8,000 units were under construction metrowide. Rent growth is expected to remain relatively healthy going into 2020, boosted by positive demographic trends and an ongoing imbalance between supply and demand.