Question: Is it foolish to sell your home in San Diego, even with a good mortgage rate, just to rent and avoid the stress of ownership?
Short answer: No, you’re not stupid. Actually, homeownership may not be the right fit for everyone. And this holds especially true in San Diego’s competitive housing market; renting can sometimes be a smarter financial and lifestyle choice. The key is comparing your true costs of ownership with the flexibility and peace of mind that renting in neighborhoods like North Park, South Park, University Heights, and others can provide.
Why Some San Diego Homeowners Want To Walk Away From Home Ownership
A homeowner recently shared a frustration that’s becoming more common here in San Diego:
- They’ve owned their house for 4 years and have been stressed since day one.
- Major repairs (roof, gutters) have already been costly, with more looming (like an AC replacement).
- They want the convenience of calling a landlord instead of paying for everything themselves.
- They considered a condo but worried HOA fees plus property taxes would still feel overwhelming.
- They saw friends renting long-term in San Diego without significant rent hikes and saving compared to the costs of ownership.
If you relate, you’re not alone. Many San Diegans who bought homes in metro neighborhoods like North Park, South Park, University Heights, and other areas in San Diego are now weighing whether selling their homes and switching to renting could be a smarter move.
The Real Cost Of Owning a Home In San Diego
Even with a relatively low mortgage rate (5.99% is still competitive), the hidden costs of ownership in San Diego add up:
- Repairs and replacements. With older homes in North Park or South Park, roofs, plumbing, and foundations often need attention. A rule of thumb is 1-2% of your home’s value annually for maintenance. On a $900,000 North Park home, that’s $9,000-$18,000 each year. Of course, this depends on the condition of the home you buy. Not all homes need this.
- Property taxes. San Diego County property taxes average 1.1% of assessed value, which on an $800,000 home equals about $8,800 annually.
- Insurance. Costs are rising across California, especially in neighborhoods with canyons. If you live 200 feet from a canyon, insurance can be quite a bit higher.
- HOA fees. Condos in Hillcrest or Downtown may offer convenience, but HOA dues can easily reach $500-$700 a month, or more.
That’s why even a “good” mortgage rate may not feel like a financial win when all-in costs are factored in.
Renting In San Diego: Not “Throwing Money Away”
The old saying that “renting is throwing money away” ignores the value of flexibility and peace of mind. Here’s what renting in San Diego can offer:
- Predictable costs. Even as rents rise, you won’t face sudden $15,000 repair bills.
- Neighborhood choice. Renting lets you try living in different metro areas like University Heights or South Park without committing to one property long-term.
- Stress reduction. Instead of worrying about a new roof, you can focus on lifestyle, whether it’s walking to cafés in South Park or enjoying nightlife in North Park.
- Liquidity. Selling could free up hundreds of thousands in equity that you could invest elsewhere.
For some, that trade-off outweighs the tax benefits and equity growth of ownership.
When Selling Your San Diego Home To Rent Makes Sense
Selling a home in San Diego may be the right move if:
- Your home stresses you out more than it brings joy. Mental health matters as much as equity.
- You’re not staying long-term. If you plan to move in the next 3-5 years, renting gives you flexibility.
- You want to free up cash. Selling could unlock equity to invest, travel, or use as a safety net.
- Rentals are cheaper. In some neighborhoods, renting a comparable home is hundreds of dollars less per month than owning, when you add property taxes and repairs
When Keeping Your San Diego Home May Still Be Smarter
On the flip side, staying in your home might make more sense if:
- Your mortgage + taxes are still lower than local rent for similar homes.
- You plan to stay long enough to benefit from long-term appreciation in San Diego’s real estate market. The equity you build can be huge.
- You want to hold on to your sub-6% mortgage rate. This rate may be hard to beat in the future.
- You’re emotionally invested in owning versus renting.
Renting In San Diego Isn’t “Stupid”, It Can Be Strategic
Deciding whether to sell and rent is a deeply personal decision. However, in a market like San Diego, where neighborhoods such as North Park, South Park, Hillcrest, and many others each offer unique rental opportunities, it’s not about being “stupid.” It’s about aligning your housing choice with your finances, stress level, and lifestyle.
When All Is Said And Done
You’re not foolish for questioning whether homeownership in San Diego is right for you. If selling a home in San Diego will reduce stress, simplify your life, and maybe even save you money, then it might be the smartest decision you can make.
What To Do Next?
If you’re debating whether to keep owning or sell your San Diego home, let’s talk. We can prepare a seller’s net sheet and compare it with the current San Diego rental market in areas such as North Park, Hillcrest, and Mission Hills, so you can make the best decision for your life and finances.
Reach out today! Your next housing step may be easier than you think.