San Diego County, California Housing Market

📝 Local Market Notes

San Diego County operates as a distinctively seller’s market, characterized by extreme affordability constraints relative to national norms. The median home value of $854,700 stands 275.4% above the national average, while the price-to-income ratio of 8.04 is more than double the national benchmark of 3.20. Similarly, the price-to-rent ratio of 31.7 significantly exceeds the national average of 18.7, indicating that purchasing remains substantially more expensive relative to rental costs than in most other U.S. regions. This structural imbalance is reinforced by a rent burden of 25.4% of household income, compared to the national average of 17.2%, suggesting that even the rental sector imposes a heavy financial load on residents. The multi-year trend reveals a period of rapid appreciation followed by recent stabilization. Home values surged 15.6% year-over-year in 2022 before moderating to 8.0% in 2024. However, recent FHFA HPI data for 2025 shows a county year-over-year change of only +0.67%, a sharp deceleration from previous years. Despite this slowdown, the county continues to outperform the broader California market, which registered a -0.29% year-over-year change, highlighting a relative strength of +0.96 percentage points. This divergence suggests that while the pace of growth has cooled, San Diego retains stronger underlying demand drivers compared to the state average. The local economic foundation supports this resilience, with total employment reaching 1,288,378 jobs and an average weekly wage of $1,611. Additionally, positive net migration of 5,637 filers between 2021 and 2022 indicates sustained demographic inflow, although the high 7.40% national mortgage rate likely contributes to the current stagnation in transaction velocity. Housing supply dynamics further complicate the market landscape. In 2025, 11,707 new units were authorized, with multi-family construction (8,201 units) significantly outpacing single-family builds (3,506 units). This shift toward multi-family development aligns with the high price-to-rent ratio, as developers respond to the strong rental demand. For potential buyers, the combination of high entry costs and slowing price growth creates a cautious environment where negotiation leverage may be emerging, though absolute price levels remain prohibitive for the median household earning $106,268. Renters face a market where costs are entrenched at high levels, with median gross rent at $2,246 per month. The data indicates a market in transition, where the explosive growth of 2021-2022 has given way to a plateau, yet the fundamental affordability gap between income and housing costs remains the defining feature of the San Diego County real estate landscape.

Based on U.S. Census ACS 2024 5-Year Estimates.