Last Updated: April 2026
San Diego Apartment Market Report: Sales, Cap Rates & Trends (2026)
Over the past 12 months, the San Diego apartment market has recorded over 320 multifamily transactions totaling more than $2.29 billion in sales volume. Apartment pricing has averaged approximately $319,000 per unit, with most properties trading between roughly $313,000 and $333,000 per unit depending on size, location, and condition. Cap rates have averaged around 4.8% to 5.1%, reflecting continued demand from private investors and 1031 exchange buyers.
Market Overview
San Diego Apartment Market at a Glance
324
Total Transactions
~$313K–$331K
Median Price per Unit
12 Mo
Reporting Period
$2.29B+
Total Sales Volume
23
Avg Deal Size (Units)
4.89%
Avg Cap Rate
$319K
Avg Price per Unit
~$376–$430
Avg Price per SF
Where Most Apartment Deals Are Happening
The majority of San Diego apartment transactions are concentrated in the $1.5M to $4.9M range, representing approximately 69% of all deals. However, larger transactions above $10M account for over 60% of total dollar volume, indicating that institutional and high-value assets continue to dominate overall market activity.
For owners of smaller properties, this means there is an active and competitive buyer pool. For owners of larger assets, it signals that institutional capital remains engaged in San Diego multifamily. View recent apartment sales across all submarkets.
San Diego Apartment Sales Trends by Quarter
Transaction volume peaked in Q3 2025 with approximately $621M in total sales, followed by a gradual stabilization through Q4 2025 and Q1 2026.
Q2 2025
~$568M
Q3 2025
~$621M
Q4 2025
~$562M
Q1 2025
~$533M
Despite rising interest rates, transaction volume has remained relatively consistent, indicating continued buyer demand across San Diego County. Read the full Q1 2026 market update for transaction-level detail.
What Cap Rates Are Apartment Buildings Trading At in San Diego?
Cap rates for San Diego apartment buildings have averaged approximately 4.8% to 5.1% over the past 12 months.
Stabilized properties typically trade at lower cap rates, while value-add opportunities may achieve higher returns depending on renovation scope, tenant profile, and income upside. Larger properties are increasingly priced based on income stability rather than projected rent growth.
Compare cap rates across submarkets: City Heights · El Cajon · La Mesa · Normal Heights · Chula Vista
How Investors Are Pricing Apartments in San Diego
While headline pricing remains relatively stable, investor behavior has shifted. Buyers are placing greater emphasis on in-place income and realistic rent assumptions rather than aggressive pro forma projections.
Smaller properties (5–20 units) remain highly competitive due to accessibility for private investors, while larger assets are increasingly evaluated based on operational stability, expense control, and long-term rent growth potential.
Properties that combine strong location, solid tenancy, and light value-add potential continue to achieve premium pricing. Owners considering a sale should understand how buyers are underwriting apartment buildings in the current rate environment.
What Is the Average Price per Unit in San Diego?
Apartment buildings in San Diego are currently trading at an average of approximately $319,000 per unit, with most transactions ranging between $300,000 and $330,000 per unit depending on property size, condition, and location.
Coastal and urban core neighborhoods command significantly higher per-unit pricing, while East County and yield-oriented submarkets offer more accessible entry points for investors. See specific pricing by submarket in our recent sales data.
How 2–4 Unit Properties Compare
2–4 unit properties operate under a different pricing dynamic than larger apartment buildings. These properties are often influenced by owner-user demand and residential financing, which can result in higher price per unit metrics and lower cap rate sensitivity compared to traditional multifamily investments.
For a deeper analysis of the duplex, triplex, and fourplex market, see our dedicated 2–4 Unit Market Report covering over 700 closed transactions and $1B+ in sales volume.