San Diego apartment construction is set to slow in 2026, but it will probably be hard to notice.

Across the county, 3,670 apartments are expected to open this year, said real estate tracker CoStar. That’s down from 6,176 in 2025 — the region’s highest in 25 years of data — but still above historical averages. Since 2001, San Diego County has pumped out an average of 2,800 apartments a year.

What’s different this year is that nearly all of the new units, roughly 79%, will be in the city of San Diego. That might be a reason for San Diego lawmakers to take a victory lap, but it’s not a great sign for housing advocates who would like to see new supply spread throughout the county.

Joshua Ohl, senior director of market analytics for CoStar, said San Diego is attractive to developers because it has upzoned, or increased density, many areas that can easily support new apartments. He said developers also like the city’s Complete Communities Housing Solutions program, which speeds up approvals and gives developers incentives for adding parks, building near transit lines and other criteria.

“It spurs development in those upzoned areas,” he said.

This year, the majority of new apartment complexes are spread out throughout America’s Finest City, as opposed to past years where East Village and Little Italy made up the lion’s share of new units. There are projects in Kearny Mesa, Mission Valley, Miramar, Bankers Hill, Serra Mesa and downtown.

There are still a few projects outside the city, including the 140-unit Solaris project in Encinitas. Tom Wermers, CEO of Wermers Companies, said North County can be a difficult place to build but worth it because of high wages and jobs in the area.

Wermers said developers start at a disadvantage in North County because the majority of land is zoned only for single-family housing, so just finding a spot to build is difficult and expensive.

“It has a lot of barriers to entry,” he said. “North County is nowhere near as aggressive with zoning as (the city of San Diego).”

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The new Broadstone Mission Valley complex under construction in mid-January. Average rent for a studio is $2,750 a month, said CoStar; for a one-bedroom, $3,290; and two-bedroom, for $3,958. (Phillip Molnar/The San Diego Union-Tribune)

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All these new apartments are opening as average rents are down annually by 0.3%, said CoStar, which seems not enough of a decline to dissuade developers. Average asking rent for a studio in mid-December was $1,954 a month; for a one-bedroom, $2,240; for a two-bedroom, $2,685; and three-bedroom, $3,420.

Most of the new projects have yet to set rents, but the few that do show that the new apartments have significantly higher rents than average. Alexan Camellia in Kearny Mesa, the biggest to open this year with 531 units, has an average asking rent of $3,049 for a studio; $3,319 for a one-bedroom; $4,274 for a two-bedroom.

If rents are dropping how are these new buildings able to charge so much? Nathan Moeder, a housing analyst with London Moeder Advisors, said many luxury buildings are trying to sell a more upscale lifestyle, complete with extravagant amenities. He said refurbishing an old building in a popular area like North Park would not be the same. Moeder said these large complexes are building a community from scratch, typically some distance from a walkable urban area.

“Unfortunately, these amenities are very expensive,” Moeder said, “and that translates to higher rents.”

Almost all new complexes are offering rent deals, from one month to six weeks free on some units (often dependent on length of a lease). Moeder said the thinking there is renters will sign up for a deal but will re-sign in a year with no incentives because they like it so much at the complex.

Downtown’s $445 million complex

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The Torrey, a 34-story, 450-unit luxury residential tower in downtown in mid-January. (K.C. Alfred / The San Diego Union-Tribune)

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The biggest apartment complex to open this year downtown, The Torrey, should crack open its doors around May with 450 units. It is one of the most expensive towers in San Diego County history, around $445 million, and will feature a Whole Foods Market on the ground floor.

Rents aren’t set yet at the 34-story tower, at 1200 Front St., from Holland Partner Group but it is expected to be among the more expensive locations. It is part of a larger redevelopment to the San Diego County Courthouse property. The Torrey was built on the part of the site that had a surface parking lot and a maintenance garage for county vehicles.

The Torrey was named after the region’s native Torrey pine trees. There’s even one growing on the ninth floor of the property in a manicured park that feels a bit like a forest in the sky.

“There’s a lack of apartments in this part of downtown,” said Brent Schertzer, an executive with Holland, during a recent tour. “We see it as an opportunity.”

It caters to different income levels by offering a variety of unit sizes: Studios, one-, two- and three-bedrooms, as well as penthouses. There are also 19 subsidized apartments for renters earning 50% of the area median income, roughly $57,000 a year for an individual.

Construction will end up taking about three years, which is common for a project of this scale. One of the biggest undertakings was two levels of underground parking for Whole Foods customers. There are also six above ground parking floors for residents. In total, it makes for nearly 800 parking spots in the building. Parking will be a separate charge for renters, so those without a car don’t have to pay.

Amenities at The Torrey are extensive. There is a pool and hot tub on the top floor with a rim flow barrier that makes it look like an infinity pool (but with a healthy distance from the edge of the building). There is also a gym at the complex (with a yoga studio), coworking space, a lounge, bike storage, mini-dog park and area to wash pets, complimentary wireless Internet throughout amenity spaces and grilling areas.

Many apartments have large bathtubs (the developer calls them “deep soaking”), and about 81% of units come with a balcony. Apartments that are high enough up should be able to see the San Diego Bay and planes landing at San Diego International Airport.

Designed by Carrier Johnson + Culture, The Torrey looks a lot like the other new apartment buildings that have opened in that general area in the past few years, including Simone and The Lindley. It may be difficult to tell them apart from up high, but the Whole Foods Market should help people trying to find The Torrey from ground level.

San Diego County’s largest this year: Alexan Camellia

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The main lobby at the Alexan Camellia apartment complex in mid-January. (Nelvin C. Cepeda / The San Diego Union-Tribune)

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For most San Diegans, Convoy District is a place you drive to for restaurants. Yet a new project aims to test the region’s appetite for apartments.

Alexan Camellia, at 4888 Convoy St., is about a seven minute walk from the heart of the Asian food district. It’s not directly above a restaurant or karaoke bar but still the closest you can get to living near the action. There are 531 apartments at Alexan, the most of any San Diego County complex in nearly five years.

Developer Trammell Crow Residential is leaning into to the proximity to its nearby neighborhood, advertising the property as a “Convoy culture with a splash of couture.” With its average asking rent of $3,493, renters are paying for the location, but it also likely has the most amenities of any new project this year.

The San Diego Union-Tribune toured the property recently as it opened to its first renters. There are still some finishing touches to complete — two pools and a few odds and ends — but it looks like a lavish hotel when entering.

Fresh scents greet visitors in a large lobby with designer furniture. A concierge waits behind a desk, ready to assist tenants. Adjacent to the lobby, there’s coworking space, a bar for residents, four-screen TV setup behind a pool table, designer glassware, a lounge complete with restaurant-style seating and direct access to a pool surrounded by palm trees.

There are eight floors of parking (separate charge if one chooses to have a car), bike storage and resident storage lockers. It also has a gym that is probably large enough for some renters to forgo a membership somewhere else.

Likely to be a popular feature is the sixth-floor lounge with wavy purple couches, a bar with a beer keg hookup, kitchen, plenty of seating and views out over the more industrial parts of Kearny Mesa.

All floor plans are eligible for a six weeks free promotion, but it requires a 16-month lease. Alexan has 22 subsidized apartments for renters earning 60% of the area median income, about $69,000 for an individual. Alexan isn’t handling the qualifying renters directly, with approvals going through the San Diego Housing Commission.

It’s hard to imagine but one of the fanciest apartment complexes is in the same location where you might have gone to buy a two-by-four a few years back. Alexan took the place of several light industrial buildings on the site, as well as a former Dixieline Lumber.