Rents across Southern California are projected to rise over the next two years, albeit at a more moderate pace compared to the double-digit increases seen during the pandemic, according to USC’s Casden Multifamily Forecast.

In San Diego County, the average rent is expected to increase by $133 per month by mid-2026, reaching $2,604. Other parts of Southern California are forecast to see monthly increases ranging from $110 to $148.

The region continues to face a housing crisis due to an insufficient supply. Over the past year, 20,709 rental units were built across Los Angeles, Orange, Riverside, San Bernardino, and San Diego counties, accounting for just 1% of the existing inventory.

You might also be interested in its Spanish version: San Diego y el sur de California anticipan aumentos moderados en rentas para 2026

Among local markets, San Diego County stands out for adding the most apartments since 2021, with 15,500 new units—double the number added in Orange County. This has kept rents in San Diego approximately $200 lower than in Orange County.

In contrast, Los Angeles County is projected to see a more modest average monthly increase of $58 by 2026. Meanwhile, the Inland Empire is expected to lead the region with a 7% rise in rents, driven by e-commerce expansion.

While rent increases have slowed, tenants should still expect to pay more in a region where housing shortages continue to strain the real estate market. Source: The San Diego Union-Tribune.