San Diego’s real estate market has shown resilience and steady growth despite economic uncertainties. The demand for housing remains high due to San Diego’s desirable climate, lifestyle, and economic opportunities. For personalized advice or more detailed information, feel free to contact our office. We’re here to help you navigate the San Diego real estate market and make informed decisions.

Home Prices

• Price Trends: Home prices in San Diego are expected to continue rising, albeit at a slower pace compared to the previous years. Experts predict a year-over-year increase of about 5-7% for 2024.
• Affordability Challenges: The high cost of living and rising home prices continue to pose challenges for affordability, particularly for first-time buyers.

Inventory Levels

• Low Inventory: Inventory levels are expected to remain low, contributing to the competitive market. This trend is driven by a combination of limited new construction and homeowners holding onto their properties longer.
• New Construction: While there are ongoing efforts to increase housing supply, new construction projects are not expected to significantly impact the inventory levels in the near term.

Interest Rates

• Rising Rates: Mortgage interest rates have been rising, and this trend is likely to continue in 2024. Higher interest rates can impact affordability and may slightly dampen demand, particularly among more price-sensitive buyers.

Rental Market

• Strong Demand: The rental market in San Diego is expected to remain strong, with steady demand from both residents and newcomers. Rental rates are projected to increase by 3-5% in 2024.
• Multifamily Development: There is an ongoing trend of multifamily developments to accommodate the demand for rental housing, especially in urban areas.

Economic Factors

• Job Market: San Diego’s job market remains robust, with strong growth in tech, biotech, healthcare, and military sectors. A healthy job market supports the housing demand.
• Population Growth: Steady population growth, driven by both domestic migration and natural increase, continues to support housing demand.

Neighborhood Trends

• Suburban Growth: Suburban areas are seeing increased demand as more people look for affordable housing options outside the city center.
• Urban Revitalization: Urban neighborhoods are experiencing revitalization efforts, attracting both investors and homebuyers looking for vibrant, walkable communities.

Investment Opportunities

• Short-Term Rentals: The short-term rental market remains lucrative, particularly in tourist-heavy areas. However, investors need to be mindful of local regulations.
• Long-Term Value: Real estate in San Diego is considered a strong long-term investment due to the city’s consistent demand and limited supply.

Challenges and Risks

• Regulatory Changes: Potential regulatory changes, such as stricter rent control measures or zoning laws, could impact the market dynamics.
• Economic Downturn: While the local economy is strong, broader economic downturns or significant increases in interest rates could pose risks to the housing market.

Overall, the San Diego real estate market is expected to continue its upward trajectory in 2024, driven by strong demand, limited inventory, and a robust local economy. Buyers should be prepared for competitive conditions, while sellers can expect favorable market conditions. Investors will find opportunities in both the rental and property appreciation sectors, although careful consideration of regulatory and economic factors is essential.