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Market Update
San Diego Apartment Market — Key Takeaways (2026)
What are apartment cap rates in San Diego right now?
Apartment cap rates in San Diego are currently ranging between 4.5% and 6.0%, depending on location, property condition, and rental upside. Coastal and stabilized assets trade at lower cap rates, while inland value-add properties typically offer higher returns.
Are apartment prices going up or down in San Diego?
Apartment prices in San Diego have stabilized after declining in 2025, with some submarkets showing modest increases. While headline rents appear flat, effective rents are often lower due to concessions, and pricing is increasingly driven by income performance and buyer demand.
What is driving apartment buyer demand in San Diego?
Buyer demand is largely driven by 1031 exchange investors, private capital, and limited inventory of 2–50 unit buildings. Many buyers are targeting properties with rent growth potential and operational upside.
Is now a good time to sell an apartment building in San Diego?
For well-positioned properties, current conditions can be favorable due to limited inventory and active buyer demand. Owners who price accurately and highlight upside potential are still achieving strong results.
Quick Market Summary
San Diego's multifamily market remains supply-constrained, with steady demand from private and 1031 buyers. While pricing is more sensitive to income performance than in prior years, well-located properties continue to attract competitive offers.