San Diego Real Estate Market Analysis

San Diego Investment Properties

Start Analyzing
Mashvisor Home

Discover San Diego

San Diego is a major city on the coast of the Pacific Ocean in Southern California, along the border of Mexico. With a population of nearly 1.5 million people, it is the second-largest city in California and the eighth largest in the country. Despite having one of the highest costs of living in the US, the city has a good demographic outlook for the coming year. The population growth rate is expected to be near the national rate, which is a good sign for current and future San Diego real estate investors since with this growth comes an increased demand for housing, on both the rental and purchase side. According to NeighborhoodScout, more than 54% of residents in the city live in rental properties as opposed to owning their own homes, meaning the tenant pool for rental properties is already large. 

America's Finest City has one of the most diverse and dynamic economies in the US, with a highly-skilled workforce and strong job growth. The defense industry has long been (and still is) a pillar of the local economy. The city is home to the largest concentration of military in the world. Along with being the headquarters of several major national defense contractors, it also hosts the largest naval fleet in the world. 

Due to its strategic location on both the US-Mexico border and on the Pacific Rim, San Diego is an important center of international trade. It is home to the world’s busiest international border crossing, and to one of America’s top 30 containership ports. 

San Diego is also a leading hub for manufacturing and innovation companies, spanning across many different industries including aerospace, shipbuilding and repair, biotech and medical treatment, telecommunication, craft brewing, and biofuel production.  

Tourism is a major industry in San Diego and accounts for one-in-eight local jobs. San Diego is one of the nation’s top-ranked tourist destinations, owing to the city’s year-round hot weather, miles of beaches, and countless tourist attractions such as Balboa Park, San Diego Zoo, and SeaWorld San Diego. Nearly 35.8 million people visited the city in 2018, spending an estimated $11.3 billion. 


The San Diego real estate market was named one of the Top 30 US Markets to Watch by PWC in its annual Emerging Trends in Real Estate: United States and Canada 2019 report. Although housing is expensive in San Diego, strong employment and income growth are generally able to drive demand for it. It is worth noting that San Diego home prices are relatively affordable compared to other top markets in the state of California. That’s why if you can afford to buy an investment property in the city, then the San Diego market can be a great place to invest in real estate. According to the PWC report, the San Diego housing market benefits particularly from growth in the technology industry, and consequently, development trends are changing in order to adjust to technical requirements. In an attempt to solve the issue of affordability, developers are in the process of building additional types of housing as well as more housing and relaxing some rules that allow for variances in construction.

San Diego  Real Estate Investment Performance

Facts and Market Trends in San Diego
Homes For Sale664
Airbnb Properties7,136
Rental Properties1,481
Traditional Vacancy rate3.80%
Airbnb Occupancy Rate64.16%
Mashmeter29.99%
Median Price$929,000
Median Rent Price$4,449
Price/sqft$791
Median Days on Market45
Price to Rent Ratio26.3
Average Cap Rate
Airbnb10.48%
Traditional6.84%
Average Rental Income
Airbnb$5,418
Traditional$3,646
 
Median Household Income$89,457
Population1,382,000
Transportation in San Diego
55 / 100
Somewhat Walkable
37 / 100
Some Transit
43 / 100
Somewhat Bikeable
Best Short Term Rental Markets

Find great vacation rentals for sale in the top performing markets

Short Term Rentals For Sale
Predict Short-Term Rental Revenue

Calculate annual revenue, ADR, & occupancy rates with our free Airbnb calculator

Short Term Rental Calculator

San Diego  Rent Prices

RENTAL STRATEGY STUDIOS 1 BEDROOM 2 BEDROOMS 3 BEDROOMS 4 BEDROOMS
Airbnb$2,453$2,710$3,959$5,754$7,394
Traditional$1,993$2,110$3,030$4,045$4,707

San Diego, CA - Homes for Sale - Newly Listed

5441 Waring Rd
San Diego, CA 92120
Allied Gardens
Single Family Residential
3 beds3 baths1,923 sq.ft.
CAP RATE
Trad. 4.09%Airbnb 4.21%
2135 Bluehaven Ct
San Diego, CA 92154
San Ysidro
Single Family Residential
3 beds3 baths1,338 sq.ft.
CAP RATE
Trad. 4.03%Airbnb 4.70%
1415 33rd St.
San Diego, CA 92102
South Park
Single Family Residential
5 beds3 baths2,096 sq.ft.
CAP RATE
Trad. 1.66%Airbnb 3.33%
5846 Carnegie St
San Diego, CA 92122
La Jolla Village
Single Family Residential
3 beds2 baths1,385 sq.ft.
CAP RATE
Trad. 2.09%Airbnb 3.31%

Top Performing San Diego Properties

3747 Hemlock St
San Diego, CA 92113
Mountain View
Single Family Residential
5 beds3 baths2,150 sq.ft.
CAP RATE
Trad. 4.87%Airbnb 7.91%
1270 Paseo Sea Breeze #26
San Diego, CA 92154
Ocean Crest
Condo/Coop
3 beds3 baths1,442 sq.ft.
CAP RATE
Trad. 2.83%Airbnb 7.83%
7134 Cottington Ln
San Diego, CA 92139
Bay Terraces
Single Family Residential
4 beds3 baths1,771 sq.ft.
CAP RATE
Trad. 4.32%Airbnb 7.80%
1123 S 41st Street #15
San Diego, CA 92113
Mountain View
Townhouse
3 beds2 baths1,240 sq.ft.
CAP RATE
Trad. 5.75%Airbnb 7.70%

Recently Sold Homes in San Diego, CA

918 27Th St
San Diego, CA 92102
Golden Hill
Multi Family
7 beds5 baths0 sq.ft.
CAP RATE
Trad. -0.04%Airbnb N/A
2026-28 Balboa Pacific Beach, CA 92109
San Diego, CA 92109
Pacific Beach
Multi Family
2 beds2 baths0 sq.ft.
CAP RATE
Trad. 3.73%Airbnb N/A
6135 Hughes Street
San Diego, CA 92115
Redwood Village
Single Family Residential
2 beds1 baths1,044 sq.ft.
CAP RATE
Trad. 2.31%Airbnb 2.54%
1580 Union St #204
San Diego, CA 92101
Little Italy
Single Family Residential
1 beds1 baths681 sq.ft.
CAP RATE
Trad. 3.06%Airbnb 2.07%

Property Value Changes and Real Estate Appreciation in the San Diego Housing Market

The San Diego real estate market has witnessed a strong real estate appreciation in recent years. According to NeighborhoodScout, since Q1 of 2000, San Diego property values have increased by 145.43%, which is an average annual appreciation rate of 4.77%. According to Zillow, the median house price within the city climbed by a modest 1.8% over the past year, and even smaller gains (0.5%) are predicted through the summer of 2020.


Zillow lists the current market temperature as “neutral”, with the median San Diego home value standing at $634,100. After several years of being a very hot seller’s market, it now seems that the San Diego housing market is cooling off and shifting towards a balanced market, with an equal number of buyers and sellers. Home prices in the area are rising more slowly today than in past years. That’s why buying an investment property in San Diego makes for a good real estate investment.

San Diego, CA Top Multi Family Homes

1457-63 Felspar
San Diego, CA 92109
Pacific Beach
Multi Family
11 beds11 baths0 sq.ft.
CAP RATE
Trad. 6.35%Airbnb N/A
7712-14 Peacock Dr
San Diego, CA 92123
Bird Land
Multi Family
5 beds4 baths0 sq.ft.
CAP RATE
Trad. 4.50%Airbnb N/A
4455 52nd Street
San Diego, CA 92115
Colina del Sol
Multi Family
12 beds8 baths5,684 sq.ft.
CAP RATE
Trad. 3.69%Airbnb N/A
220 Southlook Ave & 1/2
San Diego, CA 92113
Mountain View
Multi Family
3 beds2 baths1,700 sq.ft.
CAP RATE
Trad. 3.67%Airbnb N/A

Homes Below Median Price in the San Diego, CA Real Estate Market

3747 Hemlock St
San Diego, CA 92113
Mountain View
Single Family Residential
5 beds3 baths2,150 sq.ft.
CAP RATE
Trad. 4.87%Airbnb 7.91%
1270 Paseo Sea Breeze #26
San Diego, CA 92154
Ocean Crest
Condo/Coop
3 beds3 baths1,442 sq.ft.
CAP RATE
Trad. 2.83%Airbnb 7.83%
7134 Cottington Ln
San Diego, CA 92139
Bay Terraces
Single Family Residential
4 beds3 baths1,771 sq.ft.
CAP RATE
Trad. 4.32%Airbnb 7.80%
1123 S 41st Street #15
San Diego, CA 92113
Mountain View
Townhouse
3 beds2 baths1,240 sq.ft.
CAP RATE
Trad. 5.75%Airbnb 7.70%

San Diego Airbnb Growth and Regulations

With tourists visiting in record-breaking numbers, San Diego is the 2nd most popular destination in California for Airbnb users after Los Angeles. Some 1 million guests stayed in Airbnb rental properties throughout San Diego County in 2018, bringing hosts a total of $213 million in income, the second-highest Airbnb income in California after LA.

San Diego’s City Council is in the middle of a long and ongoing battle between supporters and opponents of vacation rentals. It spent much of 2018 arguing over proposed short-term rental regulations, especially after it enacted a new law sharply curtailing Airbnb rentals in the city. However, a successful referendum petition drive led by Airbnb supporters forced the City Council to repeal the new law. The law in question, which was to go into effect in July 2019, would have limited short-term rentals in all parts of the city to owners’ primary residences (i.e. barring the use of non-owner occupied short-term rentals), and only for 6 months of each year while hosts are not present. Under this ordinance, all San Diego Airbnb operators would have been required to obtain a Short-term Rental License annually for a fee of $949, as well as a San Diego transient occupancy tax (TOT) certificate. 

In May 2019, a new bill to regulate short-term rentals in San Diego County’s coastal communities won approval in the state Assembly. The bill takes aim at vacation rental platforms such as Airbnb, HomeAway, and VRBO. Under this assembly bill (AB-1731), vacation rental platforms are restricted to listing a residential property for no more than 30 days a year unless the host was on site. Nevertheless, the bill allows year-round rentals for traditional home-sharing in which hosts rent out a spare bedroom or a granny flat on their property. The listing of any other home or investment property is banned.

This bill received mixed reactions and divided local jurisdictions in San Diego County’s coastal zone. As for the Airbnb platform, it voiced strong objection to it.

The future of Airbnb in San Diego is uncertain given the years-long delay in getting any firm regulations adopted. The AB-1731 bill is supposedly a pilot program that shall expire in five years, and that shall be studied to determine the effectiveness of the tighter controls.

San Diego, CA Top Airbnb Homes

Entire home/apt · 1 bed
Safe Hip Quiet GARDEN STUDIO / Northpark
870
Entire home/apt · 1 bed
Private Garden Studio
860

San Diego, CA Homes for Rent

13378 Benchley Rd
San Diego, CA 92130
North City
Single Family
4 beds3 baths2,123 sq.ft.

San Diego, CA Open Houses

5441 Waring Rd
San Diego, CA 92120
Allied Gardens
Single Family Residential
3 beds3 baths1,923 sq.ft.
CAP RATE
Trad. 4.09%Airbnb 4.21%
5846 Carnegie St
San Diego, CA 92122
La Jolla Village
Single Family Residential
3 beds2 baths1,385 sq.ft.
CAP RATE
Trad. 2.09%Airbnb 3.31%
11054 Creekbridge Pl
San Diego, CA 92128
Sabre Springs
Townhouse
2 beds3 baths1,273 sq.ft.
CAP RATE
Trad. 2.11%Airbnb 1.24%
10150 Eagle Rock Ave
San Diego, CA 92126
Mira Mesa
Single Family Residential
3 beds2 baths1,248 sq.ft.
CAP RATE
Trad. 3.07%Airbnb 3.92%

Best San Diego Neighborhoods for Buying Investment Property

Egger Highlands
San Diego, CA
54%
Mashmeter
property price
713484
Median
cap rate
4.60%
Traditional
7.27%
Airbnb
rental income
$2,736
Traditional
$4,325
Airbnb
homes for sale
2
occupancy rate
56%
Airbnb
Skyline
San Diego, CA
53%
Mashmeter
property price
675000
Median
cap rate
4.47%
Traditional
6.19%
Airbnb
rental income
$2,513
Traditional
$3,481
Airbnb
homes for sale
1
occupancy rate
61%
Airbnb
Del Mar Heights
San Diego, CA
48%
Mashmeter
property price
860000
Median
cap rate
5.68%
Traditional
10.45%
Airbnb
rental income
$4,070
Traditional
$7,491
Airbnb
homes for sale
9
occupancy rate
62%
Airbnb
Carmel Mountain
San Diego, CA
47%
Mashmeter
property price
925000
Median
cap rate
4.37%
Traditional
5.39%
Airbnb
rental income
$3,367
Traditional
$4,157
Airbnb
homes for sale
1
occupancy rate
58%
Airbnb
Mira Mesa
San Diego, CA
46%
Mashmeter
property price
924477
Median
cap rate
3.80%
Traditional
5.20%
Airbnb
rental income
$2,927
Traditional
$4,008
Airbnb
homes for sale
22
occupancy rate
65%
Airbnb
Other Housing Market Reports

All San Diego Neighborhoods