San Diego STR Market Report 2026: Pricing Trends, Occupancy Data & Revenue Insights

San Diego's short-term rental market continues to be one of the most profitable and competitive vacation rental markets in the United States. With 70 miles of coastline, year-round mild weather averaging 70°F, and a diverse mix of neighborhoods ranging from luxury coastal enclaves to emerging urban districts, San Diego offers STR operators opportunities across every price point and property type.

This comprehensive market report analyzes San Diego's vacation rental landscape in 2026, breaking down pricing trends, occupancy data, seasonal patterns, and revenue projections by neighborhood. Whether you're operating a luxury beachfront villa in La Jolla or an affordable private room in Barrio Logan, this report provides the data-driven insights you need to optimize your pricing strategy and maximize revenue.

San Diego STR Market Overview: The Big Picture

San Diego's STR market operates at premium pricing compared to most U.S. markets, with whole home properties commanding average daily rates between $350-500 depending on location, amenities, and seasonality. This positions San Diego in the top tier of vacation rental markets nationally, alongside markets like Miami Beach, Scottsdale, and coastal Orange County.

Market Fundamentals

Neighborhood Breakdown: Where to Operate in San Diego

San Diego's STR market is highly segmented by neighborhood, with each district attracting different traveler demographics and commanding different pricing dynamics. Understanding these micro-markets is critical for optimal pricing strategy.

La Jolla: Luxury Coastal ($400-600 ADR)

La Jolla represents the premium tier of San Diego's vacation rental market. With dramatic coastal views, upscale dining experiences, world-class beaches including La Jolla Cove and Scripps Beach, and proximity to attractions like the Torrey Pines Golf Course and UC San Diego, La Jolla attracts affluent travelers willing to pay premium rates for exceptional properties.

Market Characteristics:

• Average ADR: $400-600 for luxury properties, $328-420 for standard homes
• Occupancy: 68-78% annually
• Peak Season: June-September (summer beach season)
• Shoulder Season: April-May, October (moderate pricing, steady demand)
• Off Season: November-March (still strong compared to other markets)

Pricing Dynamics:

La Jolla properties benefit from consistent demand across most of the year due to San Diego's mild climate. Unlike seasonal beach markets that see dramatic winter drop-offs, La Jolla maintains solid occupancy even in winter months, though at lower rates.

The key to maximizing revenue in La Jolla is understanding your property's specific positioning. Properties with ocean views, walkability to restaurants and shops, and modern amenities command 20-35% premiums over similar properties without these features. Weekend rates typically run 12-18% higher than weekday rates, with the weekend premium increasing during summer months.

Revenue Projection for 3-Bed La Jolla Home:

• Peak season (120 nights @ $500 avg): $60,000
• Shoulder season (120 nights @ $380 avg): $45,600
• Off season (100 nights @ $320 avg): $32,000
• Total annual revenue: $137,600

Barrio Logan: Artsy Affordable ($100-180 ADR)

Barrio Logan has emerged as one of San Diego's most interesting STR micro-markets. Once an overlooked industrial district, Barrio Logan has transformed into a vibrant arts and culture hub with colorful murals, craft breweries like Border X Brewing, and authentic Mexican restaurants. The neighborhood attracts budget-conscious travelers, artists, and cultural tourists looking for an authentic San Diego experience at accessible prices.

Market Characteristics:

• Average ADR: $100-180 for whole homes, $55-85 for private rooms
• Occupancy: 60-72% annually
• Peak Season: Comic-Con (July), summer months
• Steady Demand: Year-round from budget travelers and mid-term renters

Pricing Strategy:

Barrio Logan properties succeed by targeting volume over premium pricing. The neighborhood's value proposition is affordability combined with authentic local culture. Properties here should focus on maintaining high occupancy through competitive pricing rather than chasing premium rates.

Event-driven pricing is particularly important in Barrio Logan. Comic-Con (typically mid-July) creates massive demand spikes, with properties commanding 200-350% of normal rates. Smart operators also capitalize on Padres games at nearby Petco Park, concerts at nearby venues, and craft brewery events that draw cultural tourists.

Revenue Projection for Private Room in Barrio Logan:

• High-demand nights (80 nights @ $85 avg): $6,800
• Standard nights (200 nights @ $65 avg): $13,000
• Off-peak nights (50 nights @ $45 avg): $2,250
• Total annual revenue: $22,050

Pacific Beach: Party Scene & Young Travelers ($200-350 ADR)

Pacific Beach (PB) caters to a younger demographic—college students on spring break, bachelor/bachelorette parties, and 20-30 year old groups looking for beach access and nightlife. The oceanfront boardwalk, beach bars, and weekend party scene create strong demand during warm months. PB properties command moderate pricing with strong summer seasonality and heavy weekend demand.

Market Characteristics:

• Average ADR: $200-350 for whole homes
• Occupancy: 62-70% annually
• Peak Season: June-August, Spring Break (March)
• High Weekend Premium: Friday/Saturday rates 25-40% higher than weekdays
• Group Bookings: Common for 6-8+ guests

PB properties perform best when positioned for groups. Three-bedroom homes with multiple bathrooms, outdoor space, and proximity to the beach can capture group bookings at premium rates during peak weekends and holidays.

Downtown/Gaslamp: Urban Business & Event Travel ($180-320 ADR)

Downtown San Diego offers a different value proposition: walkability to convention centers, Petco Park (San Diego Padres), restaurants, and nightlife. The market is heavily influenced by business travel, conventions, and sporting events. Properties here see more balanced weekday/weekend demand compared to coastal neighborhoods.

Market Characteristics:

• Average ADR: $180-320
• Occupancy: 65-75% (high corporate demand)
• Event Spikes: Comic-Con, major conventions, Padres playoffs
• Business Travel: Strong Monday-Thursday bookings

Downtown operators should track the San Diego Convention Center calendar closely. Major conventions (Comic-Con, Bio International, various trade shows) create pricing opportunities 300-400% above base rates.

North Park: Hip Urban ($160-280 ADR)

North Park attracts culturally curious travelers—foodies, craft beer enthusiasts, and urban explorers. The neighborhood's restaurant scene (including James Beard nominees), breweries like Mike Hess and Modern Times, and walkable urban feel create steady demand from travelers who want a local experience rather than a tourist experience.

Market Characteristics:

• Average ADR: $160-280
• Occupancy: 64-73%
• Lower Weekend Premium: More balanced weekday/weekend demand (10-15% premium)
• Mid-Term Stays: Popular for 30-90 day rentals from remote workers

Seasonal Patterns: When San Diego STRs Make Money

Unlike highly seasonal markets (ski towns, beach destinations with harsh winters), San Diego operates with moderate seasonality. The city's year-round mild climate means there's no true "dead season," but demand and pricing still fluctuate significantly throughout the year.

Peak Season: June-September (Summer)

Summer represents peak revenue season for most San Diego STRs. Families on vacation, beachgoers, and tourists drive occupancy rates to 75-85% across coastal neighborhoods. Pricing power is strongest during this window, with operators able to enforce minimum stay requirements and maintain premium rates.

Typical Peak Season Dynamics:

• ADR increases 30-45% above annual average
• Weekend premium reaches 18-25%
• Minimum stay requirements can be enforced (3-7 nights)
• Lead time discounts should be minimal or eliminated
• Last-minute bookings can still command full price due to limited inventory

Comic-Con Surge (Mid-July)

San Diego Comic-Con creates one of the most dramatic pricing spikes in any U.S. vacation rental market. For 4-5 days in mid-July (typically Thursday-Sunday), properties within 10 miles of the convention center can command 300-500% of normal rates. Some downtown properties achieve $800-1,200 per night during Comic-Con weekend.

Shoulder Seasons: April-May, October-November

Shoulder seasons offer excellent opportunities for operators who understand demand patterns. Weather remains ideal (65-75°F), but families are constrained by school schedules, reducing demand slightly. Smart operators maintain pricing power during shoulder seasons by targeting different traveler segments: retirees, remote workers, couples without kids, and corporate travelers.

Shoulder Season Strategy:

• Reduce ADR by 8-15% from peak season
• Target retirees, remote workers, and couples without kids
• Maintain weekend premiums (15-20%)
• Accept 5-10% lower occupancy in exchange for higher ADR
• Offer modest discounts for 7+ night stays to capture extended vacations

Winter Mild Season: December-March

San Diego's "winter" is other cities' spring. Daytime temperatures hover around 65-70°F, making it an attractive destination for travelers escaping colder climates. While pricing drops 20-30% from peak season, occupancy remains solid (60-70%) for operators who position their properties correctly as warm-weather escapes.

Winter Season Characteristics:

• ADR down 20-30% from peak season
• Occupancy 60-70% (still healthy)
• Strong demand from Midwest/East Coast snowbirds
• Holiday spikes: Christmas/New Year's, Presidents Day weekend
• Opportunity for mid-term stays (30-90 days) from snowbirds

Competitive Positioning: Finding Your Real Comp Set

One of the most common mistakes San Diego STR operators make is benchmarking against the wrong competitive set. Generic pricing tools identify competitors algorithmically—typically 10-20 properties with similar bed/bath counts and broad geographic proximity.

This creates two critical problems:

1. You're benchmarking against properties that aren't actually competing for your bookings. A newly remodeled La Jolla villa and a dated property 8 blocks inland may both be "3-bed homes in La Jolla," but they're targeting completely different traveler segments with different willingness-to-pay thresholds.
2. You're missing your real competitors. Your true competitive set may include properties in adjacent neighborhoods, properties with different bed counts but similar total occupancy capacity, or properties targeting the same traveler segment through different value propositions (luxury amenities vs. location vs. unique experiences).

Revenue Projections: What San Diego STR Operators Actually Earn

Revenue projections vary dramatically based on property type, location, and pricing strategy. Here are realistic annual revenue targets for different San Diego property profiles based on actual market data:

Luxury Coastal Villa (La Jolla, 4-Bed)

• ADR: $500-650
• Occupancy: 70-75%
• Annual Nights Booked: 255-274
• Annual Revenue: $128,000-178,000
• Gross ROI: 6-8% (assuming $2-2.5M property value)

Mid-Tier Whole Home (North Park, 3-Bed)

• ADR: $220-280
• Occupancy: 68-74%
• Annual Nights Booked: 248-270
• Annual Revenue: $54,000-75,600
• Gross ROI: 7-9% (assuming $650-850K property value)

Affordable Private Room (Barrio Logan)

• ADR: $55-85
• Occupancy: 65-75%
• Annual Nights Booked: 237-274
• Annual Revenue: $13,000-23,300 per room
• Gross ROI: 12-18% (assuming $100-150K investment per room)

Downtown Condo (Gaslamp, 2-Bed)

• ADR: $200-280
• Occupancy: 70-76%
• Annual Nights Booked: 255-277
• Annual Revenue: $51,000-77,500
• Gross ROI: 8-10% (assuming $550-750K property value)

Pricing Strategy Insights from Calibr8ted's San Diego Portfolio

Calibr8ted operates 7 properties across San Diego's STR market, ranging from luxury coastal homes to affordable urban rooms. Here's what we've learned from managing properties in this market with our property-specific pricing algorithms:

1. Property-Specific Pricing Beats Market-Average Pricing by 15-22%

Our La Jolla property achieves $369 weekend ADR and $328 weekday ADR—12-18% above the market median for comparable properties. How? By pricing to OUR property's actual demand patterns rather than the market's average.

We identified that our property attracts corporate retreats during specific weeks (8-12 in spring, 35-37 in fall) and multi-family gatherings during holidays (Thanksgiving, Christmas, spring break). Generic pricing tools miss these micro-patterns and apply broad seasonal adjustments instead, leaving money on the table during high-value booking windows.

2. Lead Time Windows Require Different Pricing Strategies

Our data shows San Diego properties have distinct demand curves at different booking windows, each with different price elasticity:

• 30-60 day lead time: Corporate planners, family vacation planners booking summer trips (low price sensitivity—they're locking in dates)
• 14-30 day lead time: Leisure travelers comparison shopping multiple properties (moderate price sensitivity)
• 7-14 day lead time: Mix of deal-seekers and last-minute planners (variable sensitivity)
• 0-7 day lead time: Urgent travelers with limited options, weekend getaway planners (low price sensitivity—need a place NOW)

Generic pricing tools apply uniform discounts to short lead times, assuming all last-minute bookers are price-sensitive. Our data shows the opposite: 0-7 day bookers have LOW price sensitivity because their options are limited. We adjust pricing based on each window's actual elasticity, resulting in 8-12% higher revenue capture on short-notice bookings.

3. Weekend Premiums Vary by Property Type and Traveler Segment

Not all properties should use the same weekend premium. Our actual data across property types:

• La Jolla luxury homes: 12-15% weekend premium (corporate travelers and remote workers fill weekdays at good rates)
• Barrio Logan rooms: 50-55% weekend premium (leisure-heavy market, weekday demand is thin)
• Downtown condos: 8-12% weekend premium (balanced business/leisure mix creates steady demand)

Generic tools apply uniform weekend premiums (typically 20-25%) across all properties, missing these nuances and either overpricing weekdays or underpricing weekends.

4. Seasonal Transitions Are Pricing Opportunities

The 2-3 weeks before major seasons (summer, holidays, Comic-Con) represent underutilized pricing opportunities. Early planners booking for peak season have LOW price sensitivity—they're locking in prime dates for important trips, not hunting for deals.

Our strategy: raise prices 10-15% starting 2-3 weeks before peak seasons hit, capturing early bookers at premium rates. Then scale back to market rates during the actual peak season when competition increases and last-minute inventory creates pricing pressure. This counter-intuitive approach adds 3-5% to annual revenue by maximizing revenue from low-elasticity early bookers.

Regulatory Landscape: San Diego STR Rules in 2026

San Diego maintains moderate STR regulations compared to restrictive markets like Los Angeles or San Francisco. However, operators must comply with city requirements to avoid fines and legal issues.

Key Requirements:

• TOT (Transient Occupancy Tax): 10.5-12.5% depending on location within city limits
• Business License: Required for all STR operations ($250-400 annual fee)
• Whole Home Rentals: Allowed with proper licensing (some neighborhood restrictions apply)
• Mission Beach Restrictions: Whole home STRs severely restricted in Mission Beach (grandfathered properties exempt)
• Noise Ordinances: Strict enforcement of quiet hours (10pm-7am)
• Parking Requirements: One space per bedroom in most neighborhoods

Operators should verify current regulations with the City of San Diego Development Services Department, as rules evolve regularly and vary by specific zoning district.

Market Outlook: San Diego STR Trends for 2026-2027

Looking forward, several trends are shaping San Diego's vacation rental market over the next 12-18 months:

1. Continued Premium Positioning

San Diego remains a premium market with strong pricing power. ADR growth has outpaced inflation by 3-5% annually over the past 5 years, and this trend appears sustainable given limited new hotel supply, strong tourism fundamentals (39 million annual visitors), and growing demand for whole-home rentals post-pandemic.

2. Neighborhood Diversification

Travelers are increasingly exploring beyond traditional coastal neighborhoods. North Park, Barrio Logan, South Park, and Normal Heights are seeing growing demand as travelers seek "local" experiences over tourist experiences. This creates opportunities for operators in these emerging neighborhoods to capture demand at lower property acquisition costs.

3. Event-Driven Pricing Sophistication

Operators are getting better at capitalizing on events beyond Comic-Con. Padres games (especially playoff runs), concerts at Pechanga Arena and Petco Park, conventions at the San Diego Convention Center, and even local festivals create micro-demand spikes that smart operators can capture with dynamic pricing.

4. Mid-Term Rental Hybrid Models

Some operators are successfully blending short-term and mid-term (30+ day) rentals, using mid-term stays to fill off-season gaps while maintaining STR flexibility during peak seasons. This approach can increase annual occupancy by 8-15 percentage points without sacrificing peak-season revenue.