Net Move-Outs Permeate Nearly Every Submarket in San Diego

San Diego logged the worst demand performance among the nation’s 150 largest apartment markets in 4th quarter 2023. The Southern California market logged net move-outs for 987 units in the October to December time frame, marking not only the worst demand reading nationwide, but also the nation’s starkest delta between 4th quarter 2023 demand performance and the pre-COVID decade average for 4th quarter demand, according to data from RealPage Market Analytics. In San Diego, average 4th quarter demand from 2010 to 2019 (the decade leading up to the pandemic) averaged 235 units. Among San Diego’s 13 submarkets, only three posted any absorption in 4th quarter 2023, including Chula Vista/Imperial Beach (238 units), La Jolla/University City (124 units) and La Mesa/Spring Valley (11 units). The remaining 10 submarkets posted net move-outs ranging from a low of 471 units in Downtown San Diego/Coronado to a less severe 23 units in Northwest San Diego. Concurrently, 929 new apartment units delivered in San Diego in 4th quarter 2023.