San Diego Multifamily in 2026: Capital Is Waiting, But Pricing Will Decide Who Sells
As we continue into 2026, many apartment owners are asking the same question:
“If I list, will I become one of the 209 five-plus unit buildings currently sitting on the market?”
Right now, the average days on market for 5+ unit properties for sale in San Diego County is 159 days and many listings are approaching one year on market.
That number alone is causing hesitation. But here’s what most sellers are overlooking: Capital is not absent. It is patient.
The Data Behind the Headlines
According to Joshua Ohl of CoStar Analytics (February 23, 2026), commercial property sales in San Diego increased for the second consecutive year, surpassing $7.4 billion in 2025, a $100 million increase over 2024.
Multifamily led the region at $2.4 billion in sales volume, though this was down from $3.3 billion in 2024. Institutional buyers pulled back, and smaller private investors stepped into the market.
Vacancy climbed to a 15-year high and rent growth flattened which is forcing underwriting discipline.
The Fear: Getting Stuck
Currently:
209 active 5+ unit listings
Average days on market: 159 days
Meanwhile:
226 active 2–4 unit listings
Average DOM: 62 days
Sold properties averaging 46 days
Smaller product is trading.
Well-positioned product is trading.
Overpriced listings are sitting.
What Happens When Pricing Meets Strategy
We consistently see properties move when valuation discipline aligns with comprehensive marketing.
Recent examples:
• 64 Units – Lemon Grove
Under contract in 16 days
(143 days below county active listing average)
• 7 Units – Normal Heights
Under contract in 28 days
(122 days below county active listing average)
• 8 Units – 92116
Under contract in 35 days
(124 days below county active listing average)
• Duplex – Vista
Under contract in 21 days
(41 days below county active listing average)
And the examples continue. These are not anomalies.
They are the result of pricing accurately and executing consistently.
Marketing Is No Longer Single-Faceted
In today’s market, exposure alone is not enough.
Successful sales require a multi-layered, consistent campaign:
Warm calling qualified owners and active buyers
Paid advertising (Google, META, LinkedIn)
Premium platform placement (LoopNet Premium “pay-to-play”)
Institutional-quality offering memorandums
Retargeted email campaigns
Direct mailers
Ongoing SEO work and website development
Continuous digital presence
And most importantly, this must be done consistently, not reactively. The days of placing a listing in the MLS/CoStar and waiting are over. Buyers are underwriting conservatively. Capital is selective. Competition is high.
Execution matters.
The Multifamily Outlook
Many market participants expect multifamily to remain one of the more challenging asset classes in 2026, particularly as vacancy levels normalize and rent growth remains flat. However, 2025 transaction volume closely mirrored a typical pre-pandemic year, reinforcing that activity has not disappeared, it has simply become more disciplined. Investors still have capital allocated to deploy and remain active in the market, but underwriting has tightened and pricing must reflect today’s financing environment.
The Bottom Line
If you price based on 2022 expectations, you may become one of the 209.
If you price based on today’s underwriting realities and launch with a strategic, multi-channel marketing campaign, your property can trade efficiently.
Capital is not the issue.
Pricing and execution are.
And in 2026, the sellers who understand that will be the ones who move.
Want to see how your property would perform? Fill out this form for a confidential valuation and market positioning strategy session
Want to see our current listings? Head to Loopnet