San Diego’s apartment market prioritizing occupancy

Over the past three quarters, demand for San Diego apartments has been the strongest since 2021. Vacancy has stabilized and come down in mid-tier and lower-rated properties for the first time since then. Yet, the challenging demand environment from the past few years may not be entirely in the rearview mirror. Here’s what CoStar Market Analytics has been hearing from industry players in the San Diego multifamily market in 2025.