San Diego’s rental market gained fresh momentum in Q1 2025, with stable rent prices, rising inventory, and fast leasing activity across property types. While the share of listings with concessions remained elevated, it declined from the previous quarter, which is a sign that landlords are becoming more confident heading into peak season.
Rent prices held steady or increased modestly, particularly for one- and two-bedroom units, as demand for flexible living spaces continued. Inventory grew across the board, giving renters more options, but leasing times remained fast, showing that demand is keeping pace with supply.
Looking ahead, most property managers expect pricing to remain steady or increase, pointing to a positive near-term outlook. Turnover and labor costs are on the rise, though, and could impact future pricing or concession strategies.
Overall, San Diego’s rental market looks solid, with strong fundamentals and growing confidence from both renters and landlords.
Continue reading for detailed insights into San Diego’s rental performance, including pricing trends, leasing data, property manager sentiment, and more.
In San Diego, 32% of property managers anticipate rent prices will increase over the next six months, which is the highest percentage among California markets surveyed, while 67% expect prices to remain stable and just 1% foresee a decrease. On the demand side, 84% of property managers report that applicant volume is about the same, with 11% noting an increase and 5% seeing fewer applicants. This combination of rising price expectations and steady demand suggests growing confidence in the market’s strength.
In Q1 2025, 41% of San Diego listings featured concessions, well above the national average of 28%, though down from the local peak of 49% in Q4 2024. While this marks a seasonal pullback, the overall trend remains high, signaling that landlords are still relying on incentives to attract and retain tenants in a competitive market.
Rental listings in San Diego continue to lease faster than the national average. In Q1 2025, single-family homes averaged just 17 days on the market, and multifamily units averaged 21 days—both outperforming the national average of 23 days. This speed highlights solid renter demand, especially for detached homes.
Rents in San Diego remained elevated into Q1 2025. One-bedroom units saw a modest rise to $2,200, while two- and three-bedroom units hit $2,717 and $2,995, respectively. Multifamily rents rose slightly to $2,500, while single-family rents held steady at $2,400. This suggests steady pricing power for landlords, especially in the multifamily sector.
Inventory growth returned in Q1 2025, reversing the slight volatility of the previous two quarters. Listings for all unit types increased, led by one- and two-bedroom units at 6.7% each. Multifamily listings rose 7.5%, while single-family and three-bedroom homes posted more moderate gains. This upswing in supply could ease rent pressure if demand doesn't accelerate in tandem.
This guest chart, courtesy of Snaptimate, illustrates regional cost trends for a typical residential unit turnover. The sample scope is for an 800 single-family unit and includes interior painting, carpet replacement, and resurfacing a pressure-treated deck. While the Northeast remains the most expensive region, the West is rapidly catching up with a 3.8% quarter-over-quarter increase - the highest in the country. Turnover costs are rising nearly everywhere, with 95% of markets analyzed showing upward movement. In the San Diego market specifically, costs increased by 0.49%. In this work scope labor costs made up the bulk of the total, so wage inflation had the greatest impact on overall increases. The effect of tariffs on construction materials remains unclear, but it will be a key factor to watch in the coming quarters.
Rental data used in this report are sourced and catalogued directly by Rental Beast, unless otherwise noted. Rental Beast listing data covers a range of rental property types and owner types operating within the long-term rental market (generally considered to be leases with a minimum of three months). Single-family rentals (SFR) are considered to be properties with 4 or fewer units. Multifamily (MF) is more than 4 doors. Unless otherwise noted, our analysis uses the San Diego-Chula Vista-Carlsbad, CA, metropolitan statistical area (MSA) as the geographical unit.
Unique listings counts are based on rentals that were on-market at any point during the stated period. Rents are calculated based on these listings. Days on market (DOM) and concession analysis are based on these listings, with some data sources excluded due to DOM and concession info being unavailable or deemed to be unreliable. Concessions are incentives that entice renters to sign a lease (e.g., one month free, a gift card, etc.).
Our sentiment survey is based on phone conversations during Q1 2025 with rental building and community managers and property managers. Questions and answer choices:
DISCLAIMER. This report attempts to provide reliable and useful information; however, there is no guarantee that the information or other content in this document is accurate, current or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an “as is” basis, with no warranties of any kind whatsoever. Rental data used in this report are sourced and catalogued directly by Rental Beast, unless otherwise noted. Our analysis uses MSA as the geographical unit and is not reflective of all-U.S. measures. Information from this document may be used with proper attribution.©2025 by Rental Beast
Snaptimate (www.snaptimate.com) is an app that delivers instant, localized cost estimates for residential repairs, replacements, and renovations—tailored specifically for real estate professionals. It is fueled by the same data trusted by contractors for more than 20 years in the nation’s #1 estimating platform.
