SAN DIEGO — San Diego’s apartment vacancy rate has surged to a record 6.1 percent, driven largely by a boom in new construction. This figure surpasses the previous record of 5.7 percent set during the Great Recession in 2009 and reflects a dramatic increase from 2.6 percent in 2021, according to Josh Ohl, senior director of marketing analytics for the real estate tracker CoStar.
The increase is primarily attributed to a significant influx of new apartment units, with around 5,000 new units added in 2024, followed by another 5,600 in 2025. This year alone has seen about 4,000 new units enter the market. Ohl noted the steady uptick in vacancy rates, which has mirrored the growing supply of apartments. “It’s definitely been ticking up steadily for probably about the last four straight quarters,” he said.
Despite the increase in available units, average rents in San Diego have not decreased. In fact, according to Zumper’s June rent report, San Diego remains the 10th most expensive rental market in the U.S., with one-bedroom rents increasing slightly from the previous year. However, some landlords are responding to the higher vacancy rates by offering incentives to attract renters. Erik Anderson, senior managing director with global real estate firm Newmark, mentioned that landlords have begun offering perks like “four to eight weeks free” rent…