Market Analysis

San Diego, CA Multifamily Market

Cap rates, rent trends, and underwriting benchmarks for San Diego apartment investors.

4.5%
Avg Cap Rate
3.8% – 5.5%
Cap Rate Range
1.20x
Avg DSCR
$350,000
Price / Unit
$2,200
Avg Rent / Unit
4.0%
Vacancy Rate
+3.5%
YoY Rent Growth
1,420,000
Population

Market Trend

Extremely tight supply with some of the lowest vacancy rates nationally. Military and biotech employment provide demand stability. North Park, Hillcrest, and Mission Valley are top rental submarkets. High barriers to entry limit new supply.

Lender Notes

Premium pricing means lower leverage points. DSCR as low as 1.15x on stabilized deals. AB 1482 applies. Lenders comfortable with the market's supply constraints.

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