What the Latest CoStar Data Shows
San Diego’s multifamily market entered 2026 with minimal rent growth, according to recent data from CoStar Analytics.
Through the first quarter, rents have remained largely flat, marking a shift from the stronger seasonal growth typically seen at the start of the year.
Rent Growth Remains Limited
San Diego apartment rents increased just 0.1% in March, following the same 0.1% growth in February.
- First quarter rent growth: 0.5%
- Average asking rent: $2,546 per month
- Year-over-year change: -0.2%
This is below historical norms.
Between 2015 and 2019:
- Average Q1 rent growth: 1.3%
- Q2 typically accelerated to 1.6%
The current pace represents one of the slowest starts to a year in recent cycles.
Performance Varies by Asset Class
Rent growth is not uniform across property types.
March performance by asset class:
- Class A: -0.1%
- Mid-tier: +0.2%
- Naturally occurring affordable housing: +0.1%
Quarterly performance:
- Class A: +0.4%
- Class B and C: +0.1%
Higher-end properties have shown slightly stronger growth compared to workforce housing.
Submarket Performance Is Fragmented
At the neighborhood level, rent trends vary significantly.
Areas with rent declines in March:
- Mission Valley
- University Town Center
- Balboa Park submarkets
- South I-15 corridor
Areas with rent growth:
- North County
- Central Coastal neighborhoods
- East County
- Chula Vista
- Downtown San Diego
Coastal markets continue to lead:
- North Shore: +1.8% (Q1)
- Central Coast: +1.9% (Q1)
North County also posted the strongest annual rent growth in the region, though still below long-term averages.
Concessions Are Widespread
Nearly 40% of properties are offering concessions, most commonly free rent .
This indicates:
- Asking rents may not reflect actual achieved rents
- Effective rents are likely lower than headline figures
- Owners are maintaining occupancy through incentives rather than rent increases
Key Data Points
- February rent growth: 0.1%
- March rent growth: 0.1%
- Q1 rent growth: 0.5%
- Year-over-year change: -0.2%
- Average asking rent: $2,546
- ~40% of properties offering concessions
- Coastal submarkets leading with ~1.8%–1.9% quarterly growth
Final Observation
The first quarter of 2026 shows a slower start to the year, with limited rent growth, widespread concessions, and varying performance across asset classes and submarkets.
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