Q2 2012 San Diego, California Apartment Submarket Trends

CRE Resources

View our San Diego, California Submarket Map

Q2 2012 San Diego, California Apartment Submarket Trends

Not surprisingly, the strongest residential markets in San Diego County are near the Pacific Ocean, with less affluent areas located inland toward the mountains. The exception is the area south of Downtown San Diego, where the waterfront is primarily industrial and dominated by the U.S. Navy.

Southwest/Highway 435

  • The 17,588-unit La Jolla/University City submarket has a second quarter 2012 vacancy rate of 3.4%, and an average asking rent of $1,862 per month, the highest among 15 submarkets.
  • The vacancy rate fell 30 basis points during the quarter and is down 80 from a year earlier. The average asking rent increased 1.7% and the average effective rent increased 2.0% to $1,768 per month. The year-over-year gains are 2.2% asking and 3.1% effective.
  • In the 22,796-unit Clairemont/Linda Vista Mission submarket, Reis reports the vacancy rate is 4.0%, and the average asking rent is $1,504 per month.
  • The vacancy rate increased 90 basis points in the second quarter on 379 units of new construction, easily surpassing the 162 units of net absorption. The asking average is up 1.8% over the quarter and the effective average up 2.0%, to $1,460 per month. Year-over-year gains are 2.9% and 3.5%, respectively.
  • The 6,196-unit Downtown San Diego submarket has a vacancy rate of 5.5% according to Reis, the highest among 15 submarkets, and an average asking rent of $1,714 per month, second highest.
  • The average asking rent increased 0.2% for the quarter, while the average effective average rent increased 0.4% to $1,684 per month. The year-over-year gains are 1.5% and 2.4%, respectively. The 41-unit Columbia and Fir building completed here.
  • An unnamed project with 207 units is planned for Downtown San Diego, while the Blue Sky project, at 440 units, is planned for completion in 2014. Both are expected to break ground by the end of 2012.

North County

  • The 11,533-unit North Beaches submarket has a second quarter vacancy rate of 2.3%, and an average asking rent of $1,611 per month.
  • The vacancy rate is down 20 basis points for the quarter, and down 110 basis points year-over-year. Asking and effective rents were up 0.4% and 0.7%, respectively. The year-over-year increases are 1.6% and 2.2%. The effective average is $1,563 per month.
  • In the 12,253-unit Escondido-San Marcos submarket the vacancy rate is 2.6%, and the average asking rent is $1,184 per month, according to Reis.
  • The vacancy rate was unchanged in the second quarter and is down 110 basis points from a year earlier. The average asking rent increased 0.9% with the average effective rent up 1.0% to $1,144 per month. The year-over-year increases were 2.6% asking and 3.4% effective.
  • For the 10,819-unit Oceanside submarket, Reis reports a vacancy rate of 2.8%, and an average asking rent of $1,265 per month.
  • The vacancy rate here fell 10 basis points in the second quarter, the average asking rent increased 0.9%, and the average effective rent rose 1.2% to $1,239 per month. The effective average is 1.7% higher than a year earlier, with the effective rate up 2.3%.
  • For the 13,895-unit Vista submarket, Reis reports a second quarter vacancy rate of 2.6%, and an average asking rent of $1,247 per month.
  • The vacancy rate decreased 20 basis points during the second quarter, while the average asking rent rose 0.9% and the average effective rent increased 1.1% to $1,232 per month. The asking and effective averages were 3.2% and 4.0% higher than a year earlier, with vacancy down 70 basis points.

East County

  • The 15,266-unit Mira Mesa/Rancho Bernardo submarket has a vacancy rate of 4.1%, and an average asking rent of $1,611 per month, Reis reports.
  • The vacancy rate fell 40 basis points during the quarter, and is down 30 from a year earlier. The average asking rent rose 0.8% in the quarter, with the average effective rent up 1.0% to $1,581 per month. The year-over-year gains are 3.4% asking and 3.9% effective.
  • In the 13,972-unit La Mesa/Spring Valley/Lemon Grove submarket, the vacancy rate is 2.7% and the average asking rent is $1,289 per month, according to Reis.
  • The vacancy rate fell 10 basis points in the second quarter as the average asking rent increased 0.5% and the average effective rent increased 0.7% to $1,280 per month. The year-over-year gains were 1.4% asking and 2.2% effective.
  • For the 16,217-unit El Cajon/Santee/Lakeside submarket, Reis reports a vacancy rate of just 1.3%, the lowest among the submarkets, and an average asking rent of $1,080 per month— the third lowest.
  • The vacancy rate fell 10 basis points during the quarter, and is down 80 year-over-year. The average asking rent and the average effective rent increased 0.8% and 1.0% for the quarter, with the average effective rent at $1,066 per month. The year-over-year rent gains are 2.8% asking and 3.6% effective.