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San Diego Apartment Rents Post Seventh Straight Monthly Gain — But Growth Is Slowing
What owners should know before pricing a sale
San Diego asking rents rose again in July, marking the seventh consecutive month of growth and the first July with positive month-over-month gains since 2022. But the increase was just 0.1% — the slowest monthly gain of the year.
Year to date, 2026 is outperforming. Asking rents are up 1.8% through July, compared to 0.5% during the same period last year. The last time rents grew faster through the first seven months was 2023 at 3.5% — though that year turned negative in July.
Overall asking rents ended July at an average of $2,596 per month, up 1% year over year.
By property class: Rents were flat in luxury inventory and in naturally occurring affordable housing. Mid-tier inventory rose 0.2%.
Where Rents Moved — and Where They Didn't
Coastal neighborhoods cooled after a strong spring. University Town Center dipped 0.2% to $3,365, though rents remain up 3.1% year over year. North County beach towns from Del Mar to Encinitas held flat at $3,684, also up over 3% annually. Central Coast beach towns fell 0.5% to $2,488.
Despite the July pullback, coastal submarkets still lead the region in annual rent growth at 1.6% — and inventory across these areas has grown by fewer than 400 units in the past year. That supply constraint matters for pricing.
Supply-heavy submarkets went in opposite directions. Mission Valley, which absorbed 2,000 new units over the past year, saw rents rise 0.4% to $2,925 — pushing annual growth into positive territory at 0.3%. The Balboa Park neighborhoods, with 1,700 new units delivered, were down 0.1% month over month.
The South I-15 corridor led the region at 0.9% monthly growth, bringing annual growth to 1.8% despite 400 new units.
Downtown continued to soften. Rents fell 0.4% in July following nearly 700 new units, and are down 0.3% year over year to $3,155. In Chula Vista, rents dipped 0.2% to $2,490 with almost 300 units delivered.
What This Means If You're Considering a Sale
Concessions are still widespread, though the share of properties offering free rent hit its lowest level since last summer. Some operators are pulling back on renewal concessions — but most expect them to remain in play through 2027.
That matters more than the headline number. Effective rent — what you actually collect after concessions — is the figure buyers underwrite. A building showing strong asking rents but heavy concessions will price differently than one with clean, stabilized income.
If you own in a coastal submarket with limited new supply, the pricing environment is meaningfully better than it looks from the county-wide average. If you're in a submarket that absorbed significant new inventory, buyers will be pricing in the competition.
Data source: CoStar Analytics, San Diego rent report (August 2026). Analysis and broker perspective by Arby Eivazian, San Diego Apartment Broker, South Coast Commercial. DRE #01948830.
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