San Diego’s multifamily and affordable housing markets are heading into a “transition” phase, according to Chase Rongé, principal and director at MVE + Partners, a California architecture firm. 
But what does that look like across the city? 
Multifamily vacancy reached its highest rate since 2010 during the first quarter of 2026, at 4.8%. While largely due to the amount of new products coming online, the construction pipeline shrank nearly 25% year-over-year to approximately 11,000 units. It’s estimated that the city is facing a housing shortfall of about 90,000 units. 
“We’ve seen sustained momentum over the past decade, which has really made our housing market grow and…​