Multifamily Market Overview | San Diego North County, CA

Market Overview

San Diego’s multifamily market continued to experience tight conditions in Q1 2025. Vacancy remains below 5%, and rent growth is still positive, though it has cooled significantly from post-pandemic peaks. Coastal submarkets and suburban communities like North County maintain strong fundamentals, with limited new construction activity helping support rental rates. However, affordability challenges remain, pushing some demand into Class B and C units. Investors remain cautiously optimistic, especially as interest rates begin to stabilize.

About Lee & Associates

Lee & Associates is a full-service commercial real estate firm with over 70 offices across North America, known for blending national reach with strong local market intelligence. Their brokerage-driven reports reflect what’s actually happening on the ground, incorporating both data and deal flow insights from agents and partners embedded in their markets. Their multifamily outlooks are particularly helpful for developers and property owners interested in real-time leasing conditions, rent comps, and market sentiment. In California markets like San Diego—where zoning, coastal constraints, and submarket fragmentation shape performance—Lee’s granular approach offers valuable context that purely statistical reports often miss.