San Diego Unemployment Falls to 4.7% in September: What It Means for Apartment Owners

San Diego's unemployment rate fell to 4.7% in September 2026, down from a revised 4.9% in August and from 4.9% a year earlier, according to Bureau of Labor Statistics data analyzed by CoStar. The statewide rate is 5.1%. The headline is positive, but the detail underneath is more mixed, and it matters to anyone who owns apartments here.

What did San Diego's September jobs report show?

Total nonfarm employment rose by 4,400 jobs in September. Government led the gain, with more than 80% of its increase in local government education as schools returned for the fall. Private education and health services added 1,400 jobs and professional and business services added 200. Those were the only sectors that reported monthly hiring increases.

How has employment changed over the past year?

Nonfarm employment is up 19,900 jobs (1.3%) since last September. By sector:

• Private education and health services: +14,400 (all healthcare and social services)

• Leisure and hospitality: +5,300

• Office-using sectors: +1,000

• Construction: -1,700

The civilian labor force rose for the second straight month but remains nearly 20,000 below its 2025 peak. CoStar notes that rising gas prices and local inflation of 4.7% in September are weighing on the labor market.

Why does this matter for apartment owners?

Apartment demand follows household formation and renter income, so it's worth reading the jobs mix, not just the unemployment rate.

• Job growth is concentrated in healthcare, education and hospitality. These tend to be renter-heavy workforces, and their pay levels shape what tenants can afford. Office-using hiring is flat, so higher-income renters are not being added at the same pace.

• Demand is holding up. Apartment absorption (net units leased) in San Diego was 5,162 in the first half of 2026, 17th among U.S. metros (JPI research, RealPage).

• Affordability has eased. The median rent-to-income ratio for new lease signers in market-rate apartments fell to about 21.7% in Q2 2026, back near pre-pandemic levels (JPI research, RealPage). That is a national figure, not a San Diego one.

• Rising prices cut both ways. Inflation of 4.7% locally raises operating costs for owners and squeezes tenant budgets.

None of this predicts where rents or values go from here. It does suggest that underwriting should rest on your building's actual rents and expenses, not on the headline unemployment rate.

What should owners do with this information?

Check where your rents sit against current comparables, and what your building would be worth at today's cap rates. I offer both at no cost: a free rent survey and a free property valuation, each delivered within 48 hours. For current pricing benchmarks, see the latest San Diego apartment cap rates and market report.

Sources: Bureau of Labor Statistics data as analyzed by CoStar Analytics (Joshua Ohl, Oct. 21, 2026); JPI research and RealPage Market Analytics. Last updated October 21, 2026. Market commentary is observation only, not a forecast or guarantee.