{"id":145864,"date":"2022-12-06T08:00:00","date_gmt":"2022-12-06T15:00:00","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=145864"},"modified":"2023-08-09T10:30:38","modified_gmt":"2023-08-09T16:30:38","slug":"san-diego-real-estate-market","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/san-diego-real-estate-market","title":{"rendered":"Investing in the San Diego Real Estate Market\u2014Stats &#038; Trends in 2023"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm?e=BIGPOC8063212572&#038;light=false\" width=\"100%\"><\/iframe>  \n\n\n\n\n<p><span data-preserver-spaces=\"true\">The San Diego metropolitan area features a robust housing market\u2014with some of the highest historical rent and price appreciation in the United States. Anchored by a growing economy, low unemployment, and a significant military presence, the San Diego real estate market offers investors a stable base with strong long-term growth prospects.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Is Buying Real Estate in San Diego a Good Investment?<\/h2>\n\n\n\n<p>Depending on your goals, it can be a great market to invest in! The positives are that it has great long-term growth prospects, solid long-term demand, and a great job market. The negatives are that the cost of entry is much higher than in most markets, and cash flow isn&#8217;t the easiest to come by. Below, we&#8217;ll go over everything you need to know to make a decision on whether you should invest here or not.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Economic Overview<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">San Diego, located in Southern California, is the eighth-largest metropolitan area in the United States, with a population of about 3.3 million people. From 2010-2022, San Diego County grew nearly 7%, <\/span>and recent estimates suggest that the latest dip in population growth is recovering<span data-preserver-spaces=\"true\">. This is a great sign going forward. For context, the state of California overall had an estimated decline of 0.8% during the same period.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1318\" height=\"450\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image3-1.jpg\" alt=\"San Diego Population (1971-2023) - St. Louis Federal Reserve\" class=\"wp-image-156188\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image3-1.jpg 1318w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image3-1-300x102.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image3-1-1024x350.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image3-1-768x262.jpg 768w\" sizes=\"auto, (max-width: 1318px) 100vw, 1318px\" \/><figcaption class=\"wp-element-caption\"><em>San Diego Population (1971-202<\/em>3) &#8211; <em><a href=\"https:\/\/fred.stlouisfed.org\/\" target=\"_blank\" rel=\"noreferrer noopener\">St. Louis Federal Reserve<\/a><\/em><\/figcaption><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">Wages in San Diego are very high, with the median household income coming in at just above $82,000, compared to a national average of $65,000. Poverty rates are relatively low at 9.5% compared to the national average of 11.6%. These strong economic indicators are partially driven by a highly educated workforce, with nearly 40% of citizens holding a bachelor\u2019s degree or higher.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">One of San Diego\u2019s greatest strengths is its labor market. Unemployment rates remained solidly below the national average for many years pre-pandemic and have returned to very low lows in 2023.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1318\" height=\"450\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image2-1.jpg\" alt=\"Unemployment Rate in San Diego Compared to National Unemployment Rate (2013-2023) - St. Louis Federal Reserve\" class=\"wp-image-156187\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image2-1.jpg 1318w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image2-1-300x102.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image2-1-1024x350.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image2-1-768x262.jpg 768w\" sizes=\"auto, (max-width: 1318px) 100vw, 1318px\" \/><figcaption class=\"wp-element-caption\"><em>Unemployment Rate in San Diego Compared to National Unemployment Rate (2013-2023) &#8211; St. Louis Federal Reserve<\/em><\/figcaption><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">An important economic factor for real estate investors is the diversification of employment in a target market. When an area is highly dependent on one industry, it makes the market more susceptible to economic cycles. San Diego, however, has a well-diversified economy with a strong representation in education, hospitality, trade, professional services, and government.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"898\" height=\"524\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/Screen-Shot-2022-12-06-at-10.11.20-AM.png\" alt=\"san diego jobs\" class=\"wp-image-145870\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/Screen-Shot-2022-12-06-at-10.11.20-AM.png 898w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/Screen-Shot-2022-12-06-at-10.11.20-AM-300x175.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/Screen-Shot-2022-12-06-at-10.11.20-AM-768x448.png 768w\" sizes=\"auto, (max-width: 898px) 100vw, 898px\" \/><figcaption class=\"wp-element-caption\"><em>Breakdown of Employment in San Diego<\/em><\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Home Prices<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">San Diego has a strong track record of property appreciation, growing a staggering 270% from the lows of the great recession in 2009 to today, according to the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/fred.stlouisfed.org\/series\/SDXRSA\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">S&amp;P\/Case-Shiller Index.&nbsp;<\/span><\/a><span data-preserver-spaces=\"true\">As a result, San Diego has a relatively high entry point with a median sale price of about $831,000 as of May 2023.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1792\" height=\"1650\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image6-1.jpg\" alt=\"Median Sales Price in San Diego (2020 - 2023) - Redfin\" class=\"wp-image-156191\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image6-1.jpg 1792w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image6-1-300x276.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image6-1-1024x943.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image6-1-768x707.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image6-1-1536x1414.jpg 1536w\" sizes=\"auto, (max-width: 1792px) 100vw, 1792px\" \/><figcaption class=\"wp-element-caption\"><em>Median Sales Price in San Diego (2020 &#8211; 2023) &#8211; Redfin<\/em><\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Inventory<\/h3>\n\n\n\n<p>The baseline <span data-preserver-spaces=\"true\">housing supply in San Diego has steadily crept up<\/span> now that we are past the official pandemic years. Seasonality has a big impact on the months of supply, as you can see below, but it&#8217;s currently trending in an upward direction overall.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"849\" height=\"499\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image5-1.jpg\" alt=\"San Diego Months of Supply - Redfin\" class=\"wp-image-156190\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image5-1.jpg 849w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image5-1-300x176.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image5-1-768x451.jpg 768w\" sizes=\"auto, (max-width: 849px) 100vw, 849px\" \/><figcaption class=\"wp-element-caption\"><em>San Diego Months of Supply (2012-2023) &#8211; <a href=\"https:\/\/www.redfin.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Redfin<\/a><\/em><\/figcaption><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">This shift presents both opportunity and risk for real estate investors. With high-priced markets that appreciated rapidly during the pandemic, the risk of price corrections going forward becomes considerable. <\/span>We&#8217;ve already seen prices come down this year. They are, however, on their way back up, but it&#8217;s still uncertain which way they&#8217;re going to keep moving.<\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Increasing inventory means that buyers have pricing power. If you are looking to buy in the market, you should do your best to <\/span>bu<span data-preserver-spaces=\"true\">y properties below asking price to insulate yourself against potential future price declines.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Rent Trends&nbsp;<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">For investors, one of the most attractive reasons to invest in San Diego is the strong rent growth. The median rent in San Diego is above $3,100 and has grown around 10% in just the last two years alone. While rent growth started to slow down around the end of last year, it&#8217;s proven to be resilient and is already climbing back to where it was prior to the correction.<\/span><span data-preserver-spaces=\"true\"> It\u2019s a highly desirable place to live, and the demand for rental units is strong.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1999\" height=\"1559\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image1-1.jpg\" alt=\"Median Rent by Bedroom in San Diego (2020 - 2023) - Redfin\" class=\"wp-image-156186\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image1-1.jpg 1999w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image1-1-300x234.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image1-1-1024x799.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image1-1-768x599.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image1-1-1536x1198.jpg 1536w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\" \/><figcaption class=\"wp-element-caption\"><em>Median Rent by Bedroom in San Diego (2020 &#8211; 2023) &#8211; Redfin<\/em><\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Cash Flow Prospects<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">With potentially falling home values combined with high rents, cash flow prospects in San Diego are likely to increase in the coming months. That said, cash flow is relatively hard to come by as measured by the <a href=\"https:\/\/www.biggerpockets.com\/blog\/price-to-rent-ratio-analyze-location\" target=\"_blank\" rel=\"noreferrer noopener\">rent-to-price ratio (RTP)<\/a>.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Generally speaking, the higher the RTP, the better. Anything with an RTP close to 1% is considered an excellent area for cash flow, but it\u2019s not a hard and fast rule. But that doesn\u2019t mean cash flow cannot be found. There are good strategies for real estate investors to employ to generate excellent returns in San Diego.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1999\" height=\"1292\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image4-1.jpg\" alt=\"\" class=\"wp-image-156189\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image4-1.jpg 1999w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image4-1-300x194.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image4-1-1024x662.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image4-1-768x496.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/image4-1-1536x993.jpg 1536w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\" \/><figcaption class=\"wp-element-caption\">Rent-to-Price Ratio by ZIP code in San Diego<\/figcaption><\/figure>\n\n\n\n<p>These are the top three ZIP codes by RTP:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>92108 &#8211; Mission Valley East (0.60%)<\/li>\n\n\n\n<li>92114 &#8211; Skyline (0.46%)<\/li>\n\n\n\n<li>92110 &#8211; Loma Portal (0.45%)<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How to Invest in San Diego Real Estate<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">According to David Greene, a local market expert, short-term rentals, medium-term rentals, and house hacking are all excellent ways to find cash flow in this market. Traditional buy-and-hold investing can still work but will likely require some value-add work to make the numbers pencil out.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">If you can generate a good <a href=\"https:\/\/www.biggerpockets.com\/blog\/cash-on-cash-return\" target=\"_blank\" rel=\"noreferrer noopener\">cash-on-cash return<\/a> with some of the strategies mentioned above, San Diego could be a winning market for investors, given its reputation for great appreciation.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">To learn about investing in San Diego, partner with a local investor-friendly real estate agent like David Greene, who can help you find, analyze, and close the right deal.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Here\u2019s how to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/agent\/match\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">contact David on Agent Finder<\/span><\/a><span data-preserver-spaces=\"true\">. It\u2019s easy:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Search \u201cSan Diego\u201d&nbsp;<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Enter your investment criteria<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Select David Greene or other agents you want to contact<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">David is a nationally recognized authority on real estate\u2014he\u2019s an agent, lender, investor, author, and co-host of the&nbsp;<\/span><em><span data-preserver-spaces=\"true\">BiggerPockets Real Estate Podcast<\/span><\/em><span data-preserver-spaces=\"true\">. He&#8217;s been featured on CNN, Forbes, HGTV, and more. David is the first to know which strategies work, when the market shifts, and the best areas for investing that will meet your goals.<\/span><\/p>\n\n\n\n<div id=\"hero-block_62df1a82bfc88\" class=\"first:mt-0 hero-block py-4    has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Find a San Diego Agent in Minutes<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:16px\"><strong>Connect with market expert David Greene and other investor-friendly agents who can help you find, analyze, and close your next deal:<\/strong><\/p>\n\n\n\n<ul class=\"has-theme-slate-color has-text-color wp-block-list\" style=\"font-size:16px\">\n<li>Search &#8220;San Diego&#8221;<\/li>\n\n\n\n<li>Enter investment criteria<\/li>\n\n\n\n<li>Select David Greene or other agents you want to contact<\/li>\n<\/ul>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=button-custom-event-block_641244b51c36c class='button-custom-event'>\n      <a href=\"http:\/\/biggerpockets.com\/agent\/match\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Elite Agent David Greene&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/san-diego-real-estate-market&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Find an Agent<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\" first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  shadow-xl rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/BP_Elite-Agent_DG-500x500-1.jpg\" alt=\"\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>The San Diego metropolitan area features a robust housing market\u2014with some of the highest historical rent and price appreciation in the United States. Anchored by a growing economy, low unemployment, [&hellip;]<\/p>\n","protected":false},"author":108611,"featured_media":145874,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7364,7119],"tags":[],"class_list":["post-145864","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing-markets","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/145864","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/108611"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=145864"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/145864\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/145874"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=145864"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=145864"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=145864"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}