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San Diego Apartment Market Update: Q3 2026
Last updated September 24, 2026. Q3 2026 sales data plus Q2 2026 market reports.
San Diego's apartment market is holding steady, not falling. Our Q3 2026 San Diego multifamily sales data (South Coast Commercial analysis of CoStar data) shows an average cap rate of 5.15%, about $376,000 per unit, $388 per square foot, and a 12.2 gross rent multiplier. Broader county-wide reports agree on direction: Kidder Mathews reports a 4.7% average cap rate and prices near $398,500 per unit in Q2 2026, with asking rents up less than 1% from a year earlier.
Metric | Our Q3 2026 sales data (SCC / CoStar) | Kidder Mathews, Q2 2026 (county-wide) |
Average cap rate | 5.15% | 4.7% |
Price per unit | ~$376,000 | $398,509 |
Price per sq ft | $388 | — |
Gross rent multiplier | 12.2 | — |
Vacancy | — | 5.5% |
Avg. asking rent | — | $2,453/mo |
What are cap rates for San Diego apartment buildings right now?
The average cap rate in our Q3 2026 San Diego multifamily sales data is 5.15%. Kidder Mathews' county-wide average was 4.7% in Q2 2026, unchanged from a year earlier, and Northmarq expects it to hold near that level. The figures differ because each dataset covers a different mix of sales. See ranges and real examples on our San Diego apartment cap rates page.
Are San Diego apartment values going up or down?
Values are flat year over year. Kidder Mathews reports an average of $398,509 per unit in Q2 2026, versus $397,511 in Q2 2025. Class B buildings are the exception: Northmarq reports their median price topped $500,000 per unit, up about 40% this year. Our Q3 2026 sales data puts the average at about $376,000 per unit.
Is apartment vacancy rising in San Diego?
Yes, modestly. Vacancy was 5.5% in Q2 2026, up from 4.9% a year earlier (Kidder Mathews). The rise comes from new supply: 4,785 units were delivered in the first half of 2026, 42% more than a year earlier. Downtown has the highest vacancy at 8.5% (Northmarq).
Are renters keeping up with the new supply?
Mostly. Net absorption reached 3,827 units in the first half of 2026, up 39% from a year earlier (Kidder Mathews). Northmarq forecasts about 6,400 completions for the second year in a row, with more than half in Balboa Park and Mission Valley. After that, the pipeline shrinks: units under construction fell 21% to 11,800, and permits are forecast about 20% lower than in 2025.
What are average rents in San Diego?
The average asking rent was $2,453 per month in Q2 2026, up 0.8% from a year earlier (Kidder Mathews).
Unit type | Avg. asking rent, Q2 2026 |
Studio | $1,846 |
1 bedroom | $2,194 |
2 bedroom | $2,684 |
3 bedroom | $3,095 |
What does this mean if you own a 2–50 unit building?
On the ground in San Diego, the split between institutional luxury supply and private-capital workforce housing is the defining story of 2026. Large developers in Mission Valley and Downtown are offering concessions to lease up newly delivered Class A units. Central submarkets like North Park, City Heights, and Normal Heights play by different rules. For 2–50 unit buildings, demand is structural: renters priced out of new construction, or kept out of homeownership by mortgage rates, keep seeking well-located Class B and C apartments.
Today's buyers underwrite far more tightly than they did two years ago. They scrutinize actual operating expenses, especially insurance premiums and utilities, rather than accepting pro-forma projections. With asking rent growth under 1% year over year, value comes from operating efficiency, better debt terms, and capturing loss-to-lease on turnover, not from broad market appreciation.
In a flat-price market, pricing accuracy at launch matters more than ever. In our experience, overpriced listings tend to sit longer and end in price reductions. Buildings priced against realistic debt terms continue to draw private capital, 1031 exchange buyers, and local syndicates.
Recent sales we've closed
See every closed deal on our recent sales page, or the full San Diego apartment market report.
Thinking about selling or refinancing?
Market averages only go so far. Your building's value depends on its rents, expenses, and condition. Arby Eivazian has closed $150M+ in San Diego apartment sales over 12+ years. Request a confidential valuation and get a number based on your building, not the county average.
Sources: South Coast Commercial analysis of Q3 2026 San Diego multifamily sales, using CoStar data; Kidder Mathews San Diego Multifamily Market Report, Q2 2026; Northmarq San Diego Multifamily Market Insights, Q2 2026. Market commentary is observation, not a guarantee of future results.
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