Feeling overwhelmed by high home prices, rising interest rates, or the idea that you’re “just not ready” to buy a home yet? You’re not alone. Especially here in San Diego, where neighborhoods like North Park, South Park, and Normal Heights have become highly desirable.
According to the 2025 NextGen Homebuyer Report, nearly 60% of Gen Z and Millennial buyers believe homeownership is attainable. But only 19% think now is the right time to buy. So what are young buyers doing instead? They’re getting creative—and with the right guidance from the McT Real Estate Group, you can too.
Here are four alternative strategies San Diego buyers are using to make homeownership work in 2025.
1. Buying a Fixer-Upper
Buying a home that needs a little love is a popular strategy in neighborhoods like North Park and South Park, where older Craftsman and Spanish-style homes can often be purchased below market value.
Used by: 42% of buyers surveyed
Good for: Handy buyers who want more space for less money
Not great for: Those who need a move-in-ready home or have limited renovation budgets
Pros:
- Lower upfront cost
- Opportunity to build equity quickly
- Potential to customize your dream home
Cons:
- Renovation costs can add up fast
- May require permits and inspections
- Financing can be trickier with certain loan types
If a fixer-upper feels right for you, McT Real Estate Group can help you navigate renovation loan options, like FHA 203(k), which roll renovation costs into your mortgage.
2. Co-Buying With Friends or Family
Co-buying is growing in popularity, especially for buyers looking to enter neighborhoods like South Park or University Heights, where prices can be high. Teaming up with a sibling, friend, or partner can make a stylish bungalow or modern condo more attainable.
Considered by: 21% overall, 32% of Gen Z
Good for: Buyers with trusted partners who want to pool resources
Not great for: Those with unclear agreements or mismatched financial goals
Pros:
- Shared down payment and monthly costs
- Access to a larger budget for a better home or location
- Built-in support system
Cons:
- Requires clear legal agreements
- Disagreements can affect finances and relationships
- Must plan exit strategy ahead of time
Pro tip: Collaborate with the McT Real Estate Group to ensure all co-ownership agreements are well-drafted and fair to all parties involved.
3. House Hacking (Renting Out Part of Your Home)
House hacking is a smart way to offset monthly costs in high-demand areas like North Park, where single-family homes or duplexes with ADUs (Accessory Dwelling Units) can be rented out on Airbnb or to long-term tenants.
Used by: Nearly 1 in 5 buyers
Good for: Buyers open to becoming landlords or living with tenants
Not great for: Those who value privacy or want a single-use space
Pros:
- Generates passive income
- Helps cover your mortgage
- Turns your home into a long-term investment
Cons:
- Local short-term rental (STR) laws may limit options
- May require sharing space or managing tenants
- Additional insurance and planning are needed
The McT Real Estate Group can guide you through local STR regulations and help identify properties ideal for house hacking.