San Diego’s multifamily market in Q1 2026 continues to reflect a shift toward disciplined underwriting and performance-based pricing. While the 2–4 unit sector remains highly liquid, driven by accessible residential financing and a broad buyer pool, the 5+ unit market is trading more cautiously, with longer timelines and greater emphasis on in-place income. Across both segments, the key takeaway is clear: properties grounded in real performance, clean operations, and realistic pricing are attracting the most interest and transacting efficiently, while assets reliant on speculative upside or aggressive assumptions are facing increased resistance in today’s market.
