San Diego’s 1–4 unit residential market is starting 2026 with steady demand, offering opportunities for both new and experienced investors. Duplexes, triplexes, and small multi-unit properties continue to provide strong rental income and long-term growth potential.

Well-located, well-maintained units attract tenants quickly, keeping cash flow strong despite slightly higher mortgage rates. For investors looking to expand, 1031 exchanges remain a powerful tool to defer taxes and upgrade their portfolios.

Overall, 2026 is shaping up as a solid year for building residential holdings—from condos to multi-unit properties—and growing long-term wealth in San Diego.