San Diego just endured its fewest two-quarter stretch for deliveries in more than two years. Illustration: CoStar
Even in a widely recognized under supplied housing market, only 954 market rate apartment units delivered across San Diego in the first half of 2019. That’s almost 1,000 fewer units than delivered in the first half of 2018. It’s the fewest units delivered in a two-quarter stretch since the fourth quarter of 2016 and the first quarter of 2017.
759 New apartments in Mission Valley and Mission Gorge with rents average above $2,400/m. Little Italy delivered 220 units with rents averaging more than $ 3,900/m. Studios averaging $3,000/m. East Village delivered 99 units averaging almost $2,700/m.
The balance of new properties are sprinkled across San Diego and average only 35 units.
This is a stark contrast from last year, when net new supply had a post-recession peak, with 4,300 units. This year, net deliveries are expected to fall short of 3,800 units.
It’s worth noting that the San Diego housing commission estimates that San Diego should add roughly 18,000 housing units, annually, over the next decade to keep pace with population growth. This comes as housing permits have fallen in 2019, with apartment annual rent growth slowing beneath the long-term average for the first time since 2012.