How Much You Need to Earn to Buy in San Diego in 2025

San Diego’s lifestyle sells itself — beaches, sunshine, and a laid-back vibe that feels priceless. But when it comes to buying a home here, how much income do you actually need? Whether you’re purchasing your first condo or investing in a coastal property, your loan type and price point play a huge role in determining your buying power. Let’s break it down by financing type and price tier.

San Diego’s Average Home Price in 2025

The median home price in San Diego is roughly $930,000 as of 2025, but that number varies dramatically by neighborhood. Entry-level buyers can still find options under $700,000 in areas like La Mesa, Clairemont, or South Bay, while coastal neighborhoods like Point Loma, North Park, and Mission Beach command well over $1 million.

Loan Scenarios and Income Needed

Conventional Loan (20% Down, No PMI)

Home Price: $930,000
Down Payment: $186,000
Loan Amount: $744,000
Monthly Payment: ≈ $5,800–$6,000 (includes taxes and insurance)
Estimated Income Needed: $160,000–$175,000

Best for buyers with strong credit and savings who want to avoid mortgage insurance and maintain flexibility with refinancing later.

VA Loan (0% Down, No PMI)

Home Price: $930,000
Down Payment: $0
Loan Amount: $930,000
Monthly Payment: ≈ $6,200–$6,400
Estimated Income Needed: $165,000–$185,000

VA loans remain a powerful option for San Diego’s large military and veteran community, eliminating the need for a down payment and mortgage insurance.

FHA Loan (3.5% Down, More Flexible Credit)

Home Price: $930,000
Down Payment: $32,550
Loan Amount: $897,450
Monthly Payment: ≈ $6,500–$6,800
Estimated Income Needed: $180,000–$200,000

FHA loans allow for smaller down payments and lower credit scores, but monthly payments are higher due to mortgage insurance.

Breaking It Down by Price Tier

1. Entry-Level Homes (Perfect for First-Time Buyers)

Price Range: $650,000–$750,000
Think areas like La Mesa, Allied Gardens, or South Bay where single-family homes or updated bungalows are still within reach.

• Conventional Loan (10% Down): Around $5,000/month, income around $135,000–$145,000

• VA Loan (0% Down): Around $5,300/month, income around $145,000–$155,000

• FHA Loan (3.5% Down): Around $5,500/month, income around $155,000–$165,000

These properties are ideal for first-time buyers looking to build equity instead of paying rent.

2. Condos and Townhomes (Lower Maintenance, Great Entry Point)

Price Range: $500,000–$650,000
Neighborhoods like Mission Valley, Serra Mesa, and Chula Vista offer strong options with amenities like pools and gyms.

• Conventional Loan (10% Down): Around $4,000–$4,500/month, income around $115,000–$130,000

• VA Loan (0% Down): Around $4,200–$4,700/month, income around $120,000–$135,000

• FHA Loan (3.5% Down): Around $4,400–$4,900/month, income around $125,000–$140,000

This category appeals to young professionals, couples, and first-time buyers wanting walkability without major upkeep.

3. Move-Up or Family Homes

Price Range: $850,000–$1,100,000
Popular in Clairemont, Encinitas, or Point Loma, these homes suit growing families or move-up buyers wanting more space.

• Conventional Loan (20% Down): Around $6,000–$6,500/month, income around $160,000–$185,000

• VA Loan (0% Down): Around $6,400–$6,800/month, income around $170,000–$190,000

• FHA Loan (3.5% Down): Around $6,700–$7,000/month, income around $185,000–$205,000

4. Luxury Coastal Properties

Price Range: $1.3M–$2M+
Think La Jolla, Point Loma, Mission Beach, Windansea. These properties are lifestyle investments, often with vacation rental potential.

• Conventional Loan (20% Down): $9,000–$12,000/month, income around $250,000–$300,000+

• VA Loan: Possible with entitlement and strong income, around $10,000/month+

• FHA Loan: Typically not used for this range

Neighborhood Impact

• Mission Beach & Point Loma: Strong Airbnb potential, higher upfront costs

• North Park & Normal Heights: Creative, walkable, good for first-timers

• La Mesa & Clairemont: Balanced affordability and space

• South Bay & East County: Excellent value for VA or FHA buyers

How to Boost Your Buying Power

• Buy down your interest rate with seller credits

• Eliminate small monthly debts before pre-approval

• Partner with an experienced lender familiar with VA, FHA, and high-balance loans

• Explore multi-unit or ADU properties that allow short-term or long-term rental income