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Average sales price per unit is now at $125,000 countywide, similar to pricing seen back in 2004 or earlier. Rental rates on the other hand have continued to improve regularly, until now. At $1.53/SF, rents are slightly lower than six months ago. This would represent the fi rst drop, albeit small, that we have seen in more than a decade. The average vacancy rate at 5.3% is also the highest we have seen in many years. In spite of the above, San Diego continues to be one of the healthiest apartment markets in the country. Cap rates of 6% to 7% and climbing, with little new development planned, should translate to good buying opportunities.
Astute investors can again purchase apartment buildings and expect good cash flow on “day one”, something we haven’t seen in a long time. This appears to be the best time in years for an apartment investor to position themselves for good long term returns.
Contact Peter Scepanovic at 760.930.7940 for more information.
  San Diego Multi-Family Market Report - Spring 2009.pdf
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