San Diego Multifamily Occupancy Declines for First Time Since Q1 2024
San Diego's multifamily sector is slumping across the board as demand and investment activity remain low, as highlighted by CBRE in a recent market report.
One of the struggling categories was rents, which dropped by 0.4 percent in the third quarter versus the previous three months to $2,845 per month.
"Rent growth has been hard to come by since 2023 and that trend continued in Q3, with the average rent per unit decreasing by 0.4% Q-o-Q and 1.4% Y-o-Y," CBRE said.
Also, for the first time since the first quarter of 2024, occupancy declined. The rate was 95.9 percent, representing a dip of 20 basis points.
And the investment activity wasn't any better. Sales dropped to $575.4 million versus $733.6 million in the second quarter. That marks the third straight quarter that activity dropped.
"While the average price per unit fell by 10.9% Q-o-Q, sales volume was most impacted by an absence of nine-figure trades," CBRE explained.
Post Investment Group made the largest buy in the market during the third quarter, with its $73.75 million acquisition of Canyon Villa. Investment firm Lowe and Bridge Investment Group were the runners-up, with $71 million and $58 million acquisitions, respectively.
And if the results weren't bad enough, net absorption was negative at -104 units. On the bright side, demand remains positive, at 5,668 units, over the last 12 months.
Source: GlobeSt/ALM