Zumper’s latest rent‑track report shows San Diego’s median 1‑bedroom price fell 5.6 percent, while 2‑bedrooms dropped 7.5 percent. The city tops the nation’s list of expensive markets but moved lower in rank as a 15‑percent surge in active listings pushed inventory higher for renters.

City officials cite a near‑10,000‑unit uptick in new housing permits over the past two years as the driver behind the supply spike. Council President Pro Tem Kent Lee credits coordinated planning, community‑plan updates in Clairemont and the College area, and mayoral support for the construction boom in 2026.

The influx has tightened competition among landlords, forcing concessions and lower rents even in a city that ranks eleventh nationwide. Median 1‑bedroom rents now sit at $2,200 and 2‑bedrooms at $2,950, a drop that echoes national trends of 1.4 % and 1.3 % declines for comparable units.

Mayor Todd Gloria posted that the city’s pro‑housing agenda is paying off, noting that building more homes expands opportunity, eases cost pressure, and curbs homelessness. With rents falling in one of the country’s priciest markets, local leaders see the current strategy as a proof point that supply‑side policies can bend the rent curve.