Is Now the Right Time to Buy in San Diego? (Pros and Cons)

San Diego real estate has always been one of the most competitive and desirable markets in the country. With sunshine year-round, strong job growth, and world-class lifestyle perks, it is no wonder so many people want to own a piece of it. But with higher interest rates, limited inventory, and rising prices, many buyers are asking the same question: Is now the right time to buy in San Diego?

Let’s break it down with some pros and cons so you can make an informed decision.

Pros of Buying in San Diego Now

1. Long-Term Appreciation

San Diego real estate has a history of strong appreciation. Even when markets slow, coastal and lifestyle-driven cities like San Diego tend to rebound quickly. Over the long term, buying now means locking into today’s price before the next growth cycle.

2. Strong Rental & Airbnb Demand

With steady tourism and a growing population, rental demand remains high. Properties within 15–20 minutes of downtown or the beach often do well as long-term rentals, while certain properties may qualify for short-term rental licenses. This can help offset mortgage costs and make buying more affordable.

3. Lifestyle Investment

Unlike other investments, a home in San Diego also provides a lifestyle return. Beach access, outdoor living, top-rated schools, and vibrant neighborhoods are hard to put a price tag on. Buying now means enjoying those benefits sooner rather than later.

4. Potential for Negotiation

With higher interest rates slowing buyer demand, some sellers are more flexible. This can mean opportunities for price adjustments, seller credits, or creative financing like rate buydowns.

Cons of Buying in San Diego Now

1. High Home Prices

San Diego consistently ranks among the most expensive markets in the U.S. Even with slowed appreciation, median home prices remain out of reach for some buyers. You will need to budget carefully for down payment, closing costs, and ongoing property taxes.

2. Higher Interest Rates

Mortgage rates have risen compared to the historic lows of 2020–2021. This means higher monthly payments and less buying power. If rates drop in the future, refinancing could help, but buyers must plan for today’s numbers.

3. Low Inventory

San Diego has a chronic housing shortage. With limited supply, buyers may face bidding wars in desirable neighborhoods, especially near the coast or in family-friendly communities with top schools.

4. Economic Uncertainty

Markets are always influenced by broader economic factors. Inflation, employment shifts, and national housing policies can all impact affordability and demand.

Key Takeaways

• If you are planning to stay in San Diego long term, buying now could make sense, since appreciation and lifestyle benefits may outweigh short-term challenges.

• If affordability is your main concern, waiting for rates to stabilize or inventory to improve may give you more options.

• Every buyer’s situation is unique. Factors like job security, lifestyle goals, and whether you plan to house-hack or rent part of your property can tip the scale.

Final Thoughts

There is no universal “right” time to buy in San Diego—it depends on your goals and finances. For some, the lifestyle and long-term gains are worth acting now. For others, patience may provide more buying power later.

The smartest move is to run the numbers with a local realtor and lender who can break down what buying today looks like compared to waiting. That way, you can make a decision that feels confident and fits your future.