Here’s Where to Invest in the San Diego Housing Market 2019

There’s been a lot of talk about strong continued growth in the San Diego housing market 2019. It’s actually been consistently ranked as one of the hottest real estate markets in the nation year after year and 2019 seems no different. This has attracted the attention of many real estate investors. But if you’re planning on investing in San Diego real estate, you should know exactly where to invest in the market.

Related: 10 Best Places to Invest in Real Estate in 2019

The San Diego Housing Market 2019: How We Find the Best Place to Invest in Real Estate

Before we list the best neighborhoods for buying San Diego investment property, let us first tell you how we chose these places.

Buying a rental property is not something that can be done on a whim. It requires an understanding of the way the real estate market works. You need to know which market trends to look for and what makes for a “hot” market. Investors are always concerned with the expected return on their investments, as they should be. But return on investment can also be measured on a city-level basis. And even more so, on a neighborhood basis.

Related: Why You Should Buy a San Diego Investment Property Now

That’s exactly what Mashvisor does. Using reliable sources for big data and our investment property calculator, we’re able to summarize the performance levels of any market. From this, we analyzed the San Diego housing market 2019 to find the best neighborhoods with top-performing San Diego rental properties.

Performance/Profitability Metrics and Measures

The key indicators of real estate investment performance are:

Our tools provide us with more data for a fuller understanding of the San Diego housing market 2019 because, of course, there are many other details regarding the investment potential of a market. This includes things like price to rent ratio, average days on market, and price per sq/ft. Through this data, we can locate high-performance markets.

Are you interested in data for other cities in the California real estate market? How about any other market in the nation? You can start investing wisely by subscribing to our services for free right now! Start out your 14-day free trial with Mashvisor now.

Now back to the San Diego real estate investor; here is where to invest in the San Diego housing market 2019.

Best Neighborhoods in San Diego

Mashvisor’s neighborhood analysis has narrowed down your search in the San Diego housing market 2019 to specific neighborhoods which perform well for rental properties. Some perform better following the traditional rental strategy (long term rentals); others, the Airbnb rental strategy (short term rentals). We’ve divided our list on that basis.

Best Neighborhoods: Long Term Rentals

Black Mountain Ranch

  • Median Property Price: $873,876
  • Price per Square Foot: $455
  • Price to Rent Ratio: 21
  • Days on Market: 47
  • Monthly Traditional Rental Income: $3,519
  • Traditional Cash on Cash Return: 2%

Carmel Mountain

  • Median Property Price: $563,495
  • Price per Square Foot: $431
  • Price to Rent Ratio: 19
  • Days on Market: 47
  • Monthly Traditional Rental Income: $2,461
  • Traditional Cash on Cash Return: 2%

Miramar Ranch North

  • Median Property Price: $637,780
  • Price per Square Foot: $395
  • Price to Rent Ratio: 20
  • Days on Market: 47
  • Monthly Traditional Rental Income: $2,716
  • Traditional Cash on Cash Return: 2%

How can you find the most profitable properties in these neighborhoods? Do you have a free Mashvisor account? Use our Property Finder to find a lucrative San Diego real estate investment in a matter of minutes!

Best Neighborhoods: Short Term Rentals

Pacific Beach

  • Median Property Price: $1,172,675
  • Price per Square Foot: $620
  • Days on Market: 62
  • Monthly Airbnb Rental Income: $4,735
  • Airbnb Cash on Cash Return: 3%
  • Airbnb Occupancy Rate: 66%

Hillcrest

  • Median Property Price: $868,881
  • Price per Square Foot: $537
  • Days on Market: 48
  • Monthly Airbnb Rental Income: $3,114
  • Airbnb Cash on Cash Return: 2%
  • Airbnb Occupancy Rate: 72%

Del Mar Heights

  • Median Property Price: $1,372,028
  • Price per Square Foot: $701
  • Days on Market: 72
  • Monthly Airbnb Rental Income: $6,410
  • Airbnb Cash on Cash Return: 3%
  • Airbnb Occupancy Rate: 50%

So there are plenty of places to invest for both strategies. However, for one comes another issue. The legality of Airbnb short term rentals has been questioned in many cities across the country before. It has gained enough magnitude to shape investors’ investing decisions. If a market seems profitable for vacation rentals but has plenty of Airbnb regulations, some investors might turn elsewhere. So what’s the case for Airbnb San Diego?

Related: Airbnb Regulations 2018: Invest in These Cities Where Airbnb Is Legal

Is Airbnb Legal in San Diego?

Good news for Airbnb investors in the San Diego housing market 2019. The San Diego City Council recently repealed short term rental regulations which were set to take effect in July of this year. The previously agreed upon regulations would have limited rentals to only primary residences. So owners of multiple properties would have had to sell them or switch to a long term rental strategy.

There was huge opposition to these restrictions and Airbnb itself pushed to question the validity of these extra regulations. Their hard work paid off as the council voted 8-1 in favor of rescinding the regulations on short term rentals.

Short term rentals will definitely be playing their role in the economy boosting the San Diego housing market 2019. Airbnb released data which showed that San Diego hosts earned $5.2 million over Labor Day weekend as a result of hosting 15,000 travelers.

Related: 8 Best Cities for Airbnb Investment in 2019

Finding Investment Property in the San Diego Housing Market 2019

We quickly mentioned above how real estate investors can find investment property using our Property Finder Tool (pictured below) by starting their free trial.

Here's Where to Invest in the San Diego Housing Market 2019

We’ve used our Property Finder Tool to easily locate top-performing investment properties in the San Diego housing market 2019. Here they are:

Property #1:

  • Listed Property Price: $1,600,000
  • Airbnb Cash on Cash Return: 13%
  • Airbnb Occupancy Rate: 80%

Property #2:

  • Listed Property Price: $395,000
  • Airbnb Cash on Cash Return: 11%
  • Airbnb Occupancy Rate: 98%

Property #3:

  • Listed Property Price: $259,900
  • Traditional Cash on Cash Return: 7%
  • Traditional Occupancy Rate: 96%

For more details on these properties and other San Diego houses for sale, click here.

Another great tool you can benefit from is the heat map analysis tool. It will highlight neighborhoods with your prioritized criteria and help you find the best strategy for the right neighborhood. To learn more about these tools and how we will help you make faster and smarter real estate investment decisions, click here.

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