San Diego’s multifamily market is overperforming by coastal city standards, with rents and occupancy up significantly, despite pandemic-driven woes. Rents were up 0.6 percent on a trailing three-month basis as of April, to an overall average of $2,056. Meanwhile, occupancy increased 50 basis points year-over-year, to 96.2 percent as of March.
Although San Diego employment was still down 9.1 percent year-over-year through February, the construction sector is a beacon of positivity. The sector recorded the addition of 1,600 jobs through the interval, up 1.9 percent. Unemployment stood at 6.9 percent according to March preliminary data, already on a downward path since January, when the rate was 8.0 percent. Apart from money coming in through the CARES Act, the city of San Diego has rolled out a small business relief fund to aid the local economy.
Investment activity for the first four months of the year stood at $201 million, roughly doubling the sales recorded same time last year. Development activity held strong despite health crisis-driven lockdowns and restrictions, with deliveries this year expected to come in close to the metro’s five-year average. Some 8,960 units were under construction as of April, while another 39,000 units were in the planning and permitting stages.