L.A. and San Diego outperform the national average

San Diego’s occupancy increased 90 basis points over the past 12 months while within the last year the rent growth rose 20.8%, which outperformed the national average. 2021 was a record year with $3.7 billion traded in multifamily assets. With this, the first 4 months of 2022 have had a volume of $731 million, which is on par with last year. But only 911 apartments have been seen online while only another 8,445 units have been underway since the beginning of Q2, falling well short of the current demand (as seen by the graph below), which thus can increase pricing as well.



Rents went up 1.3% on a 3-month basis to $2,537 as of April for San Diego. Year over year San Diego rents rose 20.8% while the national average was 14.3%. The demand for lifestyle rates increased another 1.3% as well and the working-class renter by necessity demand also rose another 1.4% this year.


San Diego’s unemployment dropped to 3.4%, outperforming California (4.9%) and the nation (3.6%). San Diego since February has added 104,300 jobs, a 7.4% expansion compared to the national 4.7%. This is causing San Diego to be able to have a larger increase in price per unit while having people readily available to pay those high prices as seen by the chart below.

“All 32 San Diego submarkets tracked by Yardi

Matrix recorded double-digit growth in the 12

months ending in April, with half of them registering

gains above 20.0%. University (42.4% to

$3,239), Coastal (28.8% to $2,894) and Del Mar

(27.2% to $3,713) led the way.”


“The metro’s economic profile helped it bounce

back faster than many coastal cities, with San

Diego staples such as its naval base and academic

institutions and its status as a biotech hub

anchoring the recovery. Leisure and hospitality

also came roaring back, with the lifting of pandemic

restrictions. San Diego added 104,300 jobs

in the 12 months ending in February, marking a

7.4% expansion, above the 4.7% U.S. figure. More

than half of gains were in the leisure and hospitality

sector (52,700 jobs), followed by professional

and business services (21,100) and government

(10,100). While all sectors registered expansions,

information (500), manufacturing (400) and financial

activities (200) recorded only slight gains.”

“In line with most coastal metros,

San Diego’s population shrunk in

2021, contracting by 11,183 people.”




“A total of $731 million in multifamily assets

traded across San Diego in the first four months

of 2022, above the $405 million recorded during

the same time last year. The 2022 figure comes

on the heels of San Diego’s best year for transactions,

with a record $3.7 billion in multifamily

properties changing hands in 2021.”

Matrix Multifamily San Diego Report-June 2022

Source: https://www.yardimatrix.com/publications/download/file/2391-MatrixMultifamilySanDiegoReport-June2022?utm_source=WhatCountsEmail&utm_medium=Yardi%20Matrix%20Rental%20Market%20-%20Multifamily%20OutlookSouthern%20CA%20Metro&utm_campaign=062822_Matrix_MF_Metros_LA_SD_17330



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