According to MPF Reasearch, in the 2^nd quarter 2014, strong quarterly demand outpaced new completions which in turn kept occupancy at or above 96% for the 11^th time in the past 12 quarters in San Diego County and was up 0.3 points in the quarter and up 0.2 points annually. San Diego's 2^nd quarter occupancy reading topped the averages for both the West region (96.2%) and the nation as a whole (95.6%). On a regional scale, San Diego topped Los Angeles (96.7%), Orange County (96.4%) and the Inland Empire (96.2%).”

A 1.6% quarterly rent bump took year-over-year growth to 3.7%, says the firm. “That was San Diego's second biggest annual price hike since the first half of 2008. San Diego rents average $1,498 or $1.73 per square foot. That annual increase was the second best result seen here in six years.”

MPF Research says that San Diego has earned itself a reputation as one of the most predictable, stable apartment markets in the country. “Occupancy has generally hovered around 96% for four straight years (consistent with pre-recession norms) and should continue to do so going forward. Annual rent growth levels rarely stray far from 3%. And going forward, rent growth should normalize back around that level—largely because affordability tends to cap rent growth potential, even when occupancy rates remain tight. Supply will remain elevated by local standards through 2015, but completions should remain very manageable with inventory growth rates peaking around just 2%.”