San Diego Apartment Market Update (March 2026): Prices, Cap Rates & Recent Sales

The San Diego Class-C apartment market continues to show steady investor demand in early 2026. Based on multifamily sales data through March 12, 2026, there have been 344 apartment transactions totaling about $662 million in sales volume. The average sale price is about $4.2 million, while the median sale price is roughly $2.6 million, showing that many deals are still happening in the smaller private-investor range. On average, buyers are paying about $374 per square foot and roughly $270,000 per unit for apartment properties in San Diego. Cap rates are averaging around 4.97%, with many transactions trading close to a 5% cap rate, reflecting strong demand and limited housing supply.

Most of the activity in the market is concentrated in smaller apartment buildings. About 74% of transactions were between $1.5 million and $4.9 million, which typically represents 5- to 20-unit Class-C buildings commonly owned by private investors. Larger deals above $10 million accounted for less than 5% of total transactions, although those bigger properties still represent a significant portion of total dollar volume in the market.

Overall, the San Diego apartment investment market remains active, particularly for smaller and mid-size buildings that appeal to local buyers and private investors. While some pricing adjustments have occurred in the broader market, demand for rental housing remains strong. The region still faces a significant housing shortage, with economists estimating the United States needs over 1.2 million additional homes to meet current demand. This supply shortage continues to support long-term demand for apartment investments across San Diego.