For the first time in years, fixer-upper and older homes, yes, even the charming Craftsman, Spanish, and mid-century gems throughout North Park, South Park, Normal Heights, and Kensington are selling at prices that often exceed what buyers are paying for new construction elsewhere in San Diego.
While national data shows a gap between existing and new homes, the San Diego story is even more striking.
The countywide median home price is now over $900,000, according to the latest market update. Many older homes in central neighborhoods are selling well above that due to demand, walkability, character, and extremely limited inventory.
Meanwhile, newer construction communities in places like Mission Valley, Serra Mesa, Otay Mesa, and parts of East County offer more competitive pricing and meaningful builder incentives — creating situations where a brand-new home can actually cost less than a 90-year-old bungalow in North Park.
So if you’ve been assuming that resale homes are automatically the “more affordable” option in metro San Diego, this market might surprise you.
Let’s dig into what’s driving the shift, why it matters locally, and how the McT Real Estate Group helps buyers navigate these evolving dynamics in central San Diego.
The Numbers Tell a New Story
For years, new construction carried a significant premium — from 2010 to 2019, the price gap averaged $66,000. Even over the past five years, the gap hovered around $25,000.
But things flipped in Q2 and Q3 of 2024 when resale prices overtook new builds for the first time. And now, in 2025, that trend is still going strong.
National pricing direction says a lot:
- New home prices dipped 0.9% year-over-year
- Existing home prices increased 1.7% over the past year
Here in neighborhoods like North Park, South Park, Normal Heights, and Kensington, where charm and walkability drive demand, resale homes are seeing even stronger upward pressure.
The Real Cost of a Fixer in North & South Park
Buyers eyeing older homes in these communities often imagine potential, character… and savings. But the reality is that “fixer-uppers” in urban San Diego come with their own set of hurdles:
What’s driving costs up?
- Materials & labor remain expensive – Lumber, roofing, tile, plumbing — still elevated. Historic-home tradespeople often charge more due to specialized work.
- Contractor backlogs are real – Many North Park homeowners are renovating, which means longer wait times.
- Surprises are almost guaranteed – Outdated wiring, cast-iron pipes, foundation adjustments, termite repairs… older San Diego homes love to reveal secrets.
- Time (and stress) adds up – Renovations mean delays, carrying costs, temporary housing, and project management.
So while a cute bungalow might look like a deal upfront, the full renovation cost can easily exceed what you’d spend buying a newer, move-in-ready home elsewhere.
Why New Construction Can Be the Better Deal Right Now
Even though central San Diego has limited true “new construction” options, builders in nearby communities, like Mission Valley, Serra Mesa, and the outskirts of downtown, are keeping prices competitive and offering incentives that many resale sellers simply can’t match:
- Interest-rate buydowns
- Closing-cost credits
- Design-studio upgrades
- Lower maintenance costs
- Energy-efficient systems
- Builder warranties
Builders are adjusting to the market by offering smaller, more efficient floor plans and smart layouts that appeal to modern buyers looking for convenience and value.
Meanwhile, resale home prices in neighborhoods like North Park and South Park continue rising due to their location, charm, and demand — even if they need work.
When a Fixer Still Makes Sense in Central San Diego
Despite the challenges, there are still great fixer-upper opportunities — especially in historic neighborhoods when:
- You’re buying below market value
- You have the budget, time, and team to renovate
- You want a neighborhood where no new construction exists (hello, South Park!)
- You’re planning a custom remodel and want total control over the look and layout
- You’re investing long-term in a high-demand area
This is where having the McT Real Estate Group by your side genuinely matters. We know which homes are worth the work and which ones are money pits.
What This Means for You
In today’s market, “older” definitely does not mean “cheaper.”
Even for a fixer-upper, you may end up paying more for a home that needs updates than you would for something newer, move-in-ready, and energy-efficient — especially once you factor in renovations.
The right move? Compare everything.
Run the numbers. Understand the incentives. Think about your timeline. Your financial stress level. Your goals.
And if you want local guidance from agents who live and breathe North Park, South Park, and the surrounding metro areas, the McT Real Estate Group is here to help you navigate the trade-offs and uncover the best opportunities. You might be surprised at what’s possible right now.