Downtown has always had plenty of supply and looking at it now it does not seem extraordinarily high. Of course compared to the rest of SD where its plummeted it is comparatively high but not significantly more than historical. Just my 2 cents but I think the homelessness and dense living being out of favor work against it. The other issue is high HOA fees make returns for investors unfavorable. Long term I think its best suited to second homes, empty nesters and retirees. SD is beach centric and young professionals will choose beach locations over active downtown life unless rents drop a ton there which is tough due to the high fees IMO.
