San Diego’s Rental Market Is Shifting — Here’s What Renters and Owners Should Know

San Diego has spent years near the top of the national rent rankings. Now, the latest numbers suggest the market is cooling — not collapsing, but adjusting after a period of unusually fast growth.

Recent rent tracking data shows the typical one-bedroom apartment in San Diego County costs around $2,200 per month, representing a noticeable decline compared to last year. That shift has pushed San Diego slightly lower in national price rankings after holding a top-tier position for much of the post-pandemic period.

This isn’t a crash. It’s a recalibration.

The Supply Story

One of the biggest drivers behind softer rent growth is new construction. Thousands of apartment units are entering the pipeline across the county. When inventory expands, renters gain options — and pricing power spreads out instead of concentrating.

More choices in the market naturally reduce the urgency that fueled rent spikes in previous years.

At the same time, economic caution is playing a role. Households are moving less frequently, job growth has cooled, and many renters are choosing stability over upgrades. That combination slows the velocity of the rental market.

A Patchwork Market, Not One Trend

It’s important to remember that San Diego isn’t one rental market — it’s dozens. Coastal cities, urban cores, and inland communities behave differently. Some areas are still seeing stable pricing, while others are experiencing mild declines.

The broader pattern suggests balance returning after a period of extreme upward pressure.

Why This Matters

For renters, this environment creates breathing room. Negotiation becomes more realistic, incentives become more common, and urgency fades.

For investors, underwriting assumptions need to reflect moderation rather than automatic growth. The days of expecting double-digit rent jumps every year may be behind us — at least for now.

For homeowners watching the market, this shift signals normalization rather than weakness. Real estate markets don’t move in straight lines. Periods of pause are part of long-term stability.

San Diego remains one of the most desirable places to live in the country. A cooling rental market doesn’t change that — it simply marks the next phase of a maturing cycle.