SAN DIEGO – Roughly 13.5% of owner-occupied homes in San Diego are now valued at $1 million or more, the fourth-highest total in the U.S., a new analysis by LendingTree shows.
Four of the five highest totals listed by the North Carolina-based online marketplace are in California with San Jose (52.89%), San Francisco (40.37%) and Los Angeles (18.55%) coming in ahead of San Diego. The other to land in the top five was New York City, which has nearly six times more owner-occupied units than San Diego and the highest overall total of units at $1 million and above.
It may come as no surprise to those watching local real estate prices gradually tick upwards in recent years, but it is notable to see America’s Finest City again ranked highly among the priciest markets in the country.
“It’s really hard to imagine that San Diego is now up in the list with New York, San Francisco, L.A.,” longtime real estate broker Jesse Zagorsky said. “We’ve hit that level in terms of affordability.”
While San Diego’s market has been supercharged of late, Zagorsky said some of the urgency has lessened lately as interest rates are on the rise.
“The market has absolutely shifted,” he said. “It has slowed down. Will we see interest rates stay as high as they are? Personally, I don’t think so. I think we will see them come back down. We will see it pick back up but in terms of our market, I think it’s pretty stable. It’s just not moving as fast as it was.”
It is a shift felt in the local rental market as well. According to a June report from the online rental platform Zumper, the median rent price for a one-bedroom for the month was $2,320 and $2,910 for a two-bedroom, both dips of 6.1% from May. Another online platform, Apartment List, actually reported a 2.3% median rent price increase in June from the previous month and up nearly 20% compared to the same time last year.
Experts say that the COVID-19 pandemic has been a source of some of the increases as high-income remote workers have crept into San Diego, creating more maturity in the market.
“Even though we have room to grow, we cannot build houses fast enough for the demand we currently have,” Zagorsky said.
To read the full LendingTree report, click or tap here.