Is buying a home still worth it in today’s San Diego market?
Absolutely: and avoiding it could mean missing out on one of the most reliable paths to long-term financial security.
Homeownership: Still the Fastest Path to Building Wealth
Selling Your House quickly in San Diego is a great goal, but if you’ve never bought a home in the first place, you’re missing the first and most important step toward building real wealth.
Over the years, I’ve seen countless San Diego homeowners who decided to buy, even when it felt challenging, walk away years later with a healthy nest egg. Many sold their property, moved to a more affordable area, and gained the freedom to live life on their own terms.
If they had chosen to rent instead, they would have left with nothing more than a moving box full of memories.
Now I know that buying is simply not affordable for everyone. But, if you are able to pull it off, years later you will be so happy you made that decision.
This aligns with the philosophy of self-made millionaire David Bach, who calls homeownership “an escalator to wealth.” In fact, according to Federal Reserve data, the median net worth of a homeowner is nearly 40 times higher than that of a renter. That gap has widened over the past decade, even with interest rate fluctuations and housing market changes.
Why Renting Can Be More Expensive Than You Think
Many people look at the cost of buying a home and immediately feel discouraged. But the truth is, you’re paying a mortgage no matter what. The question is whether it is your mortgage or whether it is your landlord’s mortgage.
For example, paying $2,500 a month in rent for 30 years adds up to $900,000. Then, at the end of that time, you own nothing. By contrast, if you had bought a home with that same monthly payment, a significant portion of that money would have gone toward building equity. Over time, appreciation could turn your home into one of your most valuable assets.
And in San Diego, where demand for housing continues to outpace supply in many neighborhoods, that appreciation potential is very strong.
The San Diego Advantage
In the last 10 years, home values in neighborhoods like North Park, South Park, University Heights, Golden Hill, and so many other neighborhoods in San Diego have experienced significant appreciation. Even during market slowdowns, San Diego’s coastal and metro communities remain desirable thanks to:
- Limited housing inventory compared to demand
- Strong job market in industries like biotech, defense, and tourism
- Year-round lifestyle appeal. Our amazing mild weather, beaches, and vibrant local culture
If you’re on the fence about buying, consider this: homeowners who bought in San Diego in 2014 and sold in 2024 often saw six-figure gains, even if they purchased a modest starter home.
Overcoming the “I Can’t Afford It” Mindset
One of the biggest mental barriers for buyers is believing they can’t afford a home. The key is to start small and be strategic. Don’t go in thinking you can’t afford your dream home. So what! This first home is a stepping stone to that dream home.
- Run the numbers realistically. Get pre-approved to understand what you can afford today, not what you think you can afford.
- Look beyond your dream home. Your first property doesn’t have to be your forever home. Consider condos, townhomes, or smaller single-family homes to get started.
- Explore up-and-coming neighborhoods. Areas just outside the most in-demand zip codes often offer better pricing while still providing great access to the city.
Smart Buying Rules That Still Work in 2025
While markets change, a few timeless buying guidelines remain:
- Keep your housing costs under 30% of your take-home pay
- Aim for at least a 10% down payment (more if you can)
- Plan for maintenance. Remember, when things break or stop working, you will now be your own landlord and will be the one paying for this. Budget 1-2% of your home’s value annually for upkeep
- Buy with a long-term view. The longer you hold, the greater your chances of building significant equity.
How Selling Quickly Fits Into the Equation
Eventually, most homeowners will sell. They will either want to upgrade, downsize, or relocate. The beauty of owning is that when you do sell, the equity you’ve built can give you options.
In today’s market, selling your house quickly in San Diego is often possible with the right pricing, preparation, and marketing strategy. For example, our team recently helped clients sell in under two weeks by:
- Staging their home to appeal to today’s buyers
- Targeted online marketing reaching qualified leads in and outside San Diego
- Strategic pricing to create urgency without undervaluing the property
That equity then became the down payment for their next home, with money left over for investments and savings.
Why Waiting Could Cost You More
Some buyers are sitting on the sidelines, hoping interest rates will drop. While waiting might save you a small amount on your monthly payment, it could also mean facing:
- Higher competition when more buyers re-enter the market
- Higher home prices driven by increased demand
- Missed appreciation during the time you delay buying
If you buy now and rates drop later, you can refinance. But if prices rise while you wait, you could end up paying more overall.
A Real-Life Example From Our San Diego Clients
One of my clients bought a two-bedroom condo in North Park in 2017 for $480,000. They hesitated at first because it felt like a stretch, but they decided to move forward. In 2024, they called us because they wanted to sell. It then sold for $715,000.
After paying off their mortgage, they walked away with enough equity to purchase a larger home in South Park and still had funds left for renovations. If they had rented that entire time, they wouldn’t have had this opportunity.
Final Takeaway
Whether you’re a first-time buyer or considering your next move, owning real estate is one of the most proven ways to build wealth over time. In San Diego, where housing demand remains strong, waiting could cost you both equity and opportunity.
The sooner you step onto the “escalator to wealth,” the sooner you’ll start building a future that renting simply can’t match.
Let’s Talk Strategy
If you’re thinking about buying your first home or selling your current property in San Diego, the McT Real Estate Group can help you create a plan tailored to your goals.
Call 619-736-7003 and let’s start building your path to homeownership and financial freedom.
