San Diego Real Estate Blog​

Multifamily lending is shifting toward more conservative underwriting, with lenders prioritizing stable in-place cash flow over future rent growth. Insights from Krystle Simpson at Pacific Shore Capital highlight how tighter standards are reshaping acquisitions and refinances, especially in California.

2025 was a pricing-reset year for San Diego multifamily, marked by disciplined buyers and selective liquidity rather than distress.
Small-unit demand remained strong due to financing access and optionality, while 5+ unit transactions centered on income durability, positioning owners who exchanged into higher-quality assets best for 2026.

A practical look at what San Diego multifamily owners need to know in 2026 — from SB 721 enforcement and proposed rent control to ADU strategy, lending, concessions, and portfolio positioning.

Introduction SB 721 is no longer a future concern for San Diego apartment owners. As of January 1, 2026, the law is officially being enforced

Introduction Rent control returned to the forefront in early 2026 with AB 1157, a proposed Assembly Bill that would materially alter California’s statewide rent cap

Part 1: What AB 1154 Changed Effective January 1, 2026, AB 1154 allows: Non-owner-occupied financing for properties with JADUs Consideration of JADU rental income by

Introduction Concessions are no longer limited to new Class A construction. In 2026, rental incentives are materially impacting effective rents across nearly every San Diego

Introduction ADUs dominate headlines, but they are not always the best development choice. In San Diego, the distinction between an Accessory Dwelling Unit (ADU) and

Introduction In 2026, successful multifamily development is driven by strategy alignment, not construction volume. Why Ground-Up ADUs Favor Hold Strategies Ground-up ADUs struggle as flip