San Diego’s Average New apartment has dropped substantially in size Sq Ft
San Diego is known for its beaches, sunshine, and rising real estate prices. Now, it can add shrinking apartment sizes to the list. According to a new study by RentCafe, the average size of a new apartment in San Diego has dropped to just 827 square feet — a 16% decrease over the past decade. Among 100 major cities, San Diego saw the eighth-largest drop in unit size.
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This trend reflects the challenges developers face in California, where construction costs, land scarcity, and zoning laws continue to influence the design of new housing. While nationally, the average new apartment size has ticked upward to 908 square feet in the last year, San Diego is moving in the opposite direction due to space constraints and high development costs.
Why Are Apartments Getting Smaller?
Industry experts say that building smaller units is often the only way to keep projects profitable. Nathan Moeder of London Moeder Advisors explained that the cost of labor, land, and materials in California leads developers to favor studios and one-bedroom units, which offer a higher rent-per-square-foot return than larger apartments.
California’s Housing Element law also plays a role, as it emphasizes the number of new units over the type or size. That leads developers to build more compact homes to meet state mandates without breaking budgets.
San Diego’s New Micro Apartments
One notable example of this trend is The Sasan Lofts at 901 W. Washington St. on the edge of Hillcrest and Mission Hills. These newly opened micro apartments average just 300 square feet each, with monthly rents around $2,105. The building recently earned recognition from the San Diego Architectural Foundation’s “Orchids and Onions” awards for its design.
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Who’s Renting These Smaller Units?
The demand for compact urban living is driven by multiple groups, including:
- Young professionals relocating to San Diego for work
- College graduates and early-career renters
- High-income renters choosing to rent over buying amid high interest rates
Between 2018 and 2022, the share of U.S. households earning over $750,000 that rent rose to 10.5%, showing that even wealthy residents are opting for rentals over homeownership in today’s market.
How San Diego Compares
Despite the drop in size, San Diego’s average new apartment is still larger than those in several other major cities. For comparison:
- Seattle: 649 sq ft
- Portland: 668 sq ft
- Queens: 702 sq ft
- Brooklyn: 708 sq ft
- San Francisco: 716 sq ft
On the other end of the spectrum, Tallahassee and Gainesville, Florida, offer the nation’s largest new apartments, averaging 1,350 and 1,222 square feet respectively.
The Market Outlook
While apartment construction in San Diego continues at a steady pace, for-sale housing development is declining. Only 50 active residential for-sale projects were recorded in March 2025, down significantly from over 143 in 2019.
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As home prices and interest rates remain high, more people are choosing to rent — even if that means adjusting to smaller living spaces. The pressure on space, cost, and inventory will likely continue to influence apartment design in San Diego’s urban core.
If you’re searching for the perfect condo or apartment in San Diego — whether compact or spacious — I can help. Get in touch today to explore your options.
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With nearly two decades of experience helping buyers and sellers throughout San Diego, Wesley Guest understands that real estate decisions are rarely just about numbers — they’re about timing, lifestyle, and long-term peace of mind. From first-time condo buyers to seasoned sellers and relocations, his approach is focused on clarity, strategy, and protecting your interests. If you’d like help navigating your next move in San Diego, don’t hesitate to reach out and schedule a conversation below.
