The Rising Cost of Homeownership in San Diego: Families Need Nearly $275,000 a Year for a Mortgage

The Cost of Homeownership in San Diego is Skyrocketing: A Look at the Numbers

San Diego has always been known for its beautiful weather, stunning beaches, and vibrant culture. However, the cost of living in America’s Finest City has been steadily rising over the years, especially when it comes to buying a home. According to a recent report from Zillow, San Diego families now need an income of nearly $275,000 a year to afford a mortgage on a home, which is almost double what it was before the pandemic.

With the median household income in San Diego County sitting at $96,964, only about 18% of households make enough money to comfortably afford a home, according to the latest U.S. Census Bureau data. This disparity between income and housing costs highlights the growing gap between wages and the price of homeownership, making it increasingly difficult for many to achieve the dream of owning a home.

Zillow’s analysis shows that the average monthly mortgage payment in San Diego, including insurance, property taxes, and maintenance, is $5,757 after a 10% down payment. To afford this, a household would need an income of at least $273,613. These numbers indicate that it would take a San Diegan nearly 17 years to save for a 10% down payment, assuming they save 5% of their income each month.

Among the 50 largest metropolitan areas ranked by Zillow, San Diego required the fourth-highest income to afford a home, behind only San Jose, San Francisco, and Los Angeles. This high cost of homeownership has forced many potential buyers to get creative, turning to family assistance, co-buying homes, or renting out portions of their property to make ownership a reality.

For those looking for more affordable options, moving to cities like Pittsburgh, Memphis, Cleveland, or New Orleans may be a more feasible option, as these cities have lower income requirements to afford a mortgage. However, for those who wish to stay in San Diego, the increasing home prices are hard to ignore.

In February 2024, the median price of a single-family home in San Diego reached $1.043 million, up more than 16% from the previous year. Condos and townhomes also saw a significant increase, with the median price rising to $662,000. The most expensive home sold in San Diego County during that month was a stunning Spanish-style beach home in Coronado, which sold for a whopping $28 million.

While the rising cost of homeownership in San Diego may seem daunting, there are still opportunities for those willing to get creative or explore alternative options. As the city continues to grow and evolve, it remains to be seen how the housing market will adapt to meet the needs of its residents.